Narrow Destocking of Stainless Steel Inventory, Spot Prices Rise as Raw Materials Strengthen [SMM Analysis]

[SMM Stainless Steel Daily Review] SHFE Nickel Drives SS Futures Higher; Spot Stainless Steel Follows Gains, Downstream Purchases Remain Cautious According to SMM on July 16, SS futures showed an overall rising and probing pattern. Driven by SHFE nickel strength, SS simultaneously climbed and probed higher. As of the close, the most-traded SS contract settled at 14,795 yuan/mt. In the spot market, although SS futures were relatively stable in the morning and spot offers held steady accordingly, they surged rapidly in the afternoon following SHFE nickel's sharp rise, and spot offers rose in tandem. Despite rapid price fluctuations, downstream end-users remained cautious in purchasing, but low-priced cargoes in the market were basically gone. SS most-traded contract: At 10:15 a.m., SS2608 was at 14,665 yuan/mt, down 5 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the range of 255-605 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi was flat; for cold-rolled mill edge 304/2B coils, the average price in Wuxi was unchanged and Foshan's average price held steady; cold-rolled 316L/2B coil prices in Wuxi were flat; hot-rolled 316L/NO.1 coil quotes in Wuxi were unchanged; and cold-rolled 430/2B coils in both Wuxi and Foshan were flat. This week, macro fund disturbances intensified, and stainless steel futures followed an independent weak trajectory, with the futures movement clearly diverging from SHFE nickel and other nonferrous metals. During the week, fund sentiment switched repeatedly, driving wild swings in SS futures. The key support level of 14,500 yuan/mt was breached earlier, and the overall trend center continued to shift lower, with overall market trading sentiment leaning bearish. Spot and...

[SMM Stainless Steel Daily Review] SS short-term maintains a relatively stable consolidation pattern; stainless steel spot prices stable, end-users cautiously wait and see On July 15, SMM reported that SS futures showed a relatively stable consolidation pattern. SS futures pulled back in the night session, but after the morning open, the decline was partially recovered, then moved sideways until the close, with the most-traded SS contract settling at 14,595 yuan/mt. Spot market side, demand was in the off-season, and recent volatility intensifies in SS futures with no clear directional guidance, so downstream end-users held a strong wait-and-see sentiment, overall transactions were sluggish; spot prices were largely stable, with only some traders under shipment pressure occasionally releasing low-priced goods. SS futures most-traded contract. At 10:15 a.m., SS2608 reported at 14,660 yuan/mt, up 120 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi area were in the 260-610 yuan/mt range. In the spot market: Wuxi cold-rolled 201/2B coil average flat; cold-rolled raw edge 304/2B coil (Wuxi +25 yuan/mt, Foshan flat); Wuxi cold-rolled 316L/2B coil -100 yuan/mt; hot-rolled 316L/NO.1 coil, Wuxi flat; cold-rolled 430/2B coil, both flat. This week, macro liquidity disturbances intensified, stainless steel futures moved independently with a weak trend, and futures noticeably deviated from the pace of SHFE nickel and other nonferrous metals. During the week, capital sentiment switched frequently, driving SS futures into wild swings, earlier 14,500...

[SMM Stainless Steel Daily Review] Capital Flows and SHFE Nickel Resonance Propel SS Futures; Spot Stainless Steel Demand Remains Weak According to SMM news on July 14, SS futures showed a strengthening and upward trend. Driven by the strengthening of SHFE nickel during the night session, combined with the impact of SS's own capital flow fluctuations, SS rebounded quickly after the night session opened, and then maintained a generally strong consolidation pattern. As of the midday close, the most-traded SS contract settled at 14,565 yuan/mt. In the spot market, boosted by SS's stop falling and strengthening, spot quotations recovered from yesterday afternoon's decline, low-priced sources in the market decreased, some traders raised their quotations, downstream end-user clients remained in a wait-and-see sentiment, and transactions remained mediocre overall. The most-traded SS futures contract. At 10:15 a.m., SS2608 was reported at 14,540 yuan/mt, up 210 yuan/mt from the previous trading day. Spot premiums for 304/2B in Wuxi were in the 330-730 yuan/mt range. In the spot market, the average price of cold-rolled 201/2B coil in Wuxi was flat; for cold-rolled raw edge 304/2B coil, the average price in Wuxi held steady, and the average price in Foshan held steady; the price of cold-rolled 316L/2B coil in Wuxi was flat; for hot-rolled 316L/NO.1 coil, the Wuxi quotation was flat; and cold-rolled 430/2B coil in both Wuxi and Foshan was flat. This week, macro capital flow disturbances intensified, and stainless steel futures moved in an independent weak trend, with market movements significantly diverging from the rhythm of SHFE nickel and other nonferrous metals. During the week, capital sentiment switched repeatedly, causing SS futures to swing wildly. The key support level of 14,500 yuan/mt was breached earlier, and the overall trend center continued to...