High Costs in 304 Stainless Steel Cold Rolling Market Limited Downstream Transmission Pressures Profits [SMM Analysis]

SMM March 21 News, This week (March 17-21, 2025), the situation in the 304 stainless steel cold-rolled market remained grim. Raw material prices such as nickel iron still maintained at a relatively high level, putting continuous pressure on the cost of 304 stainless steel cold-rolled coils. Cost side, at the beginning of the week, the cost of 304 stainless steel cold-rolled coils was about 13,670 yuan/mt, then it was basically stable around this level, and by March 21, the cost remained at about 13,750 yuan/mt. Although there were no significant fluctuations, the high cost continued to exert pressure on the market. In the spot market, the price of 304 stainless steel cold-rolled coils fluctuated at 13,450 yuan/mt this week, with very limited increases, struggling to keep up with the pace of rising costs. Despite frequent price hikes by major producers, the transmission of higher prices to downstream consumers was limited. Profitability-wise, the profit margin for the week was around -2%. On March 17, the profit margin was approximately -1.6%, and as costs stabilized and prices struggled to rise, the profit margin continued to decline, reaching -2.2% by March 21, further exacerbating losses. The fluctuation of costs at highs and the struggle of prices to rise continuously squeezed the profit margins. Even though there was some trading activity, the gap between costs and prices could not be effectively narrowed, leading to a continuous deterioration in profitability. This week, the cost of 304 stainless steel cold-rolled coils remained at a high level, with only slight price increases, widening the gap between costs and prices, and significantly reducing the profit margin. Improvement in profits still depends on a substantial increase in downstream demand and adjustments in the market structure. It is expected that next week, costs will remain in a high range, and downstream demand will not see much improvement in the short term, keeping profit margins limited. For any questions, please contact Yang Chaoxing 13585549799 (same WeChat)》Click to view SMM stainless steel spot historical prices》Click to view SMM stainless steel industry chain database