Stainless Steel Transactions Were Weak, Cost Support Loosened [SMM Stainless Steel Spot Daily Review]

April 21 - Today, SS futures prices showed a fluctuating trend. The adjustment of US tariff policies has significantly impacted export-oriented stainless steel enterprises, coupled with the continuous weakening of cost support for stainless steel recently, severely dampening market confidence. The anticipated pre-Labour Day holiday stockpiling purchases did not materialize as expected, and market transactions remained weak.

In the futures market, the most-traded contract 2506 fluctuated. At 10:30 AM, SS2506 was quoted at 12,760 yuan/mt, down 25 yuan/mt from the previous trading day. In Wuxi, the spot premiums/discounts for 304/2B were in the range of 510-610 yuan/mt. In the spot market, the cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 8,250 yuan/mt; the cold-rolled trimmed 304/2B coils averaged 13,150 yuan/mt in Wuxi and 13,175 yuan/mt in Foshan; the cold-rolled 316L/2B coils in Wuxi were 23,650 yuan/mt, and in Foshan, 23,800 yuan/mt; the hot-rolled 316L/NO.1 coils were both quoted at 22,900 yuan/mt in both regions; the cold-rolled 430/2B coils in Wuxi and Foshan were both 7,500 yuan/mt.

Currently, although the impact of US tariff policies has not fully manifested, downstream end-user customers are extremely cautious in their purchasing, and market transactions remain sluggish. Traders are choosing to sell at a discount to ensure cash flow, and the influx of low-priced sources from some futures-spot arbitrage has led to frequent low-price transactions. However, as current stainless steel prices are already at relatively low levels, further declines face significant resistance. Overall, it is expected that stainless steel prices will maintain a relatively stable trend in the short term.