Trading was sluggish before Labour Day holiday, with stainless steel prices in the doldrums [[SMM Daily Review of Stainless Steel Spot Cargo]]

On April 28, SS futures started the day with a lower opening and rebounded during the daytime session. Affected by the decline in stainless steel mills' list prices last Friday, stainless steel spot prices generally fell today. Despite the price pullback and the approaching Labour Day holiday, the trading atmosphere in the stainless steel market remained sluggish due to the continued weakness in downstream demand, with no significant release of pre-holiday stockpiling demand observed.

In the futures market, the most-traded 2506 contract stopped falling and began to rebound. At 10:30 a.m., SS2506 was quoted at 12,745 yuan/mt, down 40 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 425 to 625 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 had an average price of 13,100 yuan/mt in Wuxi and 13,150 yuan/mt in Foshan; cold-rolled 316L/2B coils were priced 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; and cold-rolled 430/2B coils were both priced at 7,500 yuan/mt in Wuxi and Foshan.

Currently, stainless steel prices are at a relatively low level, and stainless steel mills are facing a situation where costs exceed selling prices, creating significant resistance to further price declines. However, due to the continued weakness in downstream end-use demand, market participants are generally adopting a cautious wait-and-see attitude, leading to persistent sluggish trading conditions. It is difficult for the market to see significant changes before the Labour Day holiday, and stainless steel prices are expected to maintain a weak trend in the short term.