Stainless Steel Market Transactions Mediocre, Supply-Demand Imbalance Constrains Future Market [SMM Stainless Steel Spot Daily Review]

Published: Feb 24, 2025 11:42

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[SMM Stainless Steel Spot Daily Review: Mediocre Transactions in Stainless Steel Market, Supply-Demand Imbalance Restrains Future Market] On February 24, the stainless steel market showed moderate activity, but spot transactions remained mediocre. Futures side, SHFE stainless steel futures SS2505, the most-traded contract, experienced significant price fluctuations, with overall volatility in recent times. Spot market prices for various grades remained stable, while spot premiums/discounts for 304/2B fluctuated frequently. Currently, high inventory levels, ample supply, and slow demand recovery are suppressing both spot and futures prices. In the short term, the market is likely to remain influenced by the supply-demand imbalance, with raw material prices and the pace of downstream demand recovery being key factors.

On February 24, the stainless steel market showed moderate activity, but spot transactions were mediocre.

In the futures market, the SHFE stainless steel futures SS2505 most-traded contract experienced significant price fluctuations at 10:30, quoted at 13,225 yuan/mt. The spot premiums for Wuxi stainless steel ranged from -55 to 245 yuan/mt. Note: spot trimmed-edge price = rough-edge price + 170 yuan/mt. Looking at recent trends, since July 2024, futures prices have generally been volatile, with significant market uncertainty. Recently, price fluctuations have intensified, and market sentiment has been relatively sensitive.

In the spot market, stainless steel spot prices for different grades were as follows: 201/2B coil (Wuxi, Foshan) price range was 7,700-7,800 yuan/mt, with a nationwide average price of 7,750 yuan/mt, unchanged from the previous day. 304/2B coil (Wuxi, Foshan, and other regions) price range was 13,000-13,800 yuan/mt, with a nationwide average price of 13,170 yuan/mt, remaining stable overall. The nationwide average price for 316L/2B coil was 24,125 yuan/mt, and for 430/2B coil was 7,400 yuan/mt, with no changes today.

Regarding 304/2B spot premiums and discounts, frequent fluctuations at both high and low levels indicated a complex interaction between the spot and futures markets. Currently, market inventory remains high, supply is relatively ample, and demand recovery is slow, resulting in insufficient upward momentum for spot prices, which also exerts some pressure on the futures market.

Market Outlook: In the short term, the stainless steel market is expected to continue being affected by the supply-demand imbalance, leaving little room for significant price increases. Fluctuations in raw material prices and the pace of downstream demand recovery will be key factors influencing market trends.

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