The expected improvement in tariffs is driving a rebound in futures, while stainless steel spot transactions remain weak and await changes. [SMM Stainless Steel Spot Daily Review]

On April 23, news from last night indicated that US President Trump stated that current tariffs on China are too high and is expected to significantly reduce taxes, signaling a positive easing of the tariff war. Meanwhile, Trump explicitly stated that he has no intention of firing Fed Chairman Powell. This series of remarks significantly cooled market risk aversion sentiment. As a result, the futures market performed strongly overall, with all varieties except gold rising, and SS futures rebounded after the daytime session opened. However, despite the rebound in futures prices, the spread between stainless steel futures and spot prices remains significant. Due to lingering doubts about the subsequent market trend, cautious sentiment prevails, and downstream purchasing enthusiasm has not been effectively boosted, resulting in continued weak market transactions. Current market transactions are still dominated by low-priced warrants, with overall trading activity showing no significant improvement.

In the futures market, the most-traded contract 2506 stopped falling and began to rebound. At 10:30 AM, SS2506 was quoted at 12,785 yuan/mt, up 75 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B were in the range of 435-585 yuan/mt. In the spot market, cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 8,250 yuan/mt; cold-rolled trimmed 304/2B coils averaged 13,125 yuan/mt in Wuxi and 13,155 yuan/mt in Foshan; cold-rolled 316L/2B coils were quoted at 23,650 yuan/mt in Wuxi and 23,800 yuan/mt in Foshan; hot-rolled 316L/NO.1 coils were quoted at 22,900 yuan/mt in both regions; cold-rolled 430/2B coils in Wuxi and Foshan were both quoted at 7,500 yuan/mt.

Currently, although the US has signaled a tariff easing, specific policy measures have not yet been announced, leaving the subsequent impact on the market uncertain. In the spot market, even as the Labour Day holiday approaches, the expected pre-holiday stockpiling surge has not materialized. Dominated by cautious sentiment, market transactions remain sluggish. Although current stainless steel prices are relatively low, with downstream demand persistently weak, prices are unlikely to see a significant rebound in the short term. Overall, stainless steel prices are expected to remain stable in the near term.