Stainless Steel Transactions Remained Sluggish Before Labour Day Holiday, Market Stalemate Makes Prices Hard to Rise or Fall [[SMM Stainless Steel Spot Daily Review]]

Published: Apr 29, 2025 17:33

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SMM Stainless Steel Spot Market Daily Review: Stainless Steel Transactions Remain Sluggish Before Labour Day Holiday, Market Stalemate with Prices Hard to Rise or Fall Today, SS futures first fell and then rose, continuing the previous fluctuating trend. As the Labour Day holiday approaches, downstream enterprises are in a strong wait-and-see mood, with muted demand for pre-holiday stockpiling, and market transactions remain sluggish. Currently, stainless steel prices have fallen to relatively low levels, and most stainless steel producers are caught in a dilemma of cost and selling price inversion, making it difficult for prices to fall further. However, affected by the continuous decline in futures prices, current market transactions are mainly low-priced warrant trades and rigid demand purchases, and market activity urgently needs to be improved. Futures side, the most-traded contract 2506 fluctuated. At 10:30 am, SS2506 was quoted at 12,685 yuan/mt. In the spot market, the average price of cold-rolled trimmed 304/2B coil in Wuxi was 12,950 yuan/mt, and in Foshan, it was 13,000 yuan/mt. Currently, pre-Labour Day holiday procurement and stockpiling demand have not met expectations, and market transactions continue the previous sluggish trend. Although the market generally believes that stainless steel prices are at relatively low levels and have rebound potential, the futures market continues to show a weak and fluctuating trend, suppressing spot prices, which remain at low levels. Although there are occasional reports of production cuts by stainless steel mills, the overall production decline is limited, with more structural adjustments between steel grades, and no substantial reduction in supply. Affected by the uncertainty of tariff policies, the cautious and pessimistic sentiment of downstream enterprises continues to spread, and the market is expected to remain in a state of multi-party game in the short term, with prices likely to remain stable.

Today, SS futures exhibited a trend of initial decline followed by a rebound, continuing the previous fluctuating trend. As the Labour Day holiday approaches, downstream enterprises showed strong wait-and-see sentiment, with muted pre-holiday stockpiling demand and persistently sluggish market transactions. Currently, stainless steel prices have fallen to relatively low levels, and most stainless steel producers are facing the dilemma of costs exceeding selling prices, creating resistance to further price declines. However, influenced by the continuous drop in futures prices, current market transactions are mainly focused on low-priced warrant trading and rigid demand procurement, with market activity urgently needing improvement.

In the futures market, the most-traded SS2506 contract fluctuated. At 10:30 a.m., SS2506 was quoted at 12,685 yuan/mt, up 20 yuan/mt from the previous trading day. In the spot market, spot premiums/discounts for 304/2B in Wuxi ranged from 335 to 585 yuan/mt. In Wuxi and Foshan, cold-rolled 201/2B coils were both quoted at 8,100 yuan/mt; cold-rolled trimmed 304/2B coils were quoted at an average of 12,950 yuan/mt in Wuxi and 13,000 yuan/mt in Foshan; cold-rolled 316L/2B coils were quoted at 23,550 yuan/mt in Wuxi and 23,650 yuan/mt in Foshan; hot-rolled 316L/NO.1 coils were quoted at 22,775 yuan/mt in both regions; cold-rolled 430/2B coils were quoted at 7,500 yuan/mt in both Wuxi and Foshan.

Currently, pre-Labour Day stockpiling demand has fallen short of expectations, and market transactions remain sluggish as before. Although the market generally believes that stainless steel prices are at relatively low levels with potential for a rebound, the futures market continues to exhibit a weak fluctuating trend, suppressing spot prices, which remain at low levels. While there have been occasional reports of production cuts by stainless steel mills, the overall decline in production is limited, mainly reflecting structural adjustments among steel grades, with no substantial reduction in supply. Affected by uncertainties in tariff policies, downstream enterprises maintain a cautious and pessimistic sentiment. In the short term, the market is expected to remain in a state of multi-party contention, with prices likely to remain stable.

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