[SMM Analysis: Labour Day holiday Leads to Increase in Stainless Steel Social Inventory - How Will Inventory Be Reduced After the Holiday?] On May 6, 2025, the total stainless steel inventory in Wuxi and Foshan increased from 975,400 mt on April 30 to 998,200 mt, with a WoW increase of 2.34%. Specifically, the growth rate in Wuxi was 2.48%, while in Foshan it was 2.17%. Inventories across various series all increased to varying degrees.

On the first day after the holiday, DCE iron ore futures prices fluctuated repeatedly, with the most-traded contract I2509 eventually closing at 704.5, unchanged from the pre-holiday level. Traders sold goods according to market conditions, with limited speculative transactions; steel mills purchased as needed.

[SMM Daily Review of Stainless Steel Spot Market: Steady Prices Amid High Supply, Sluggish Market Persists Post-Labour Day Holiday] SMM reported on May 6 that today marked the first trading day after the Labour Day holiday, with SS futures continuing the previous volatile trend but remaining stable overall. As most traders had just returned from their holidays, market prices largely maintained pre-holiday levels. Despite stainless steel prices being at a low, the market sentiment remained cautious due to the "rush to buy amid continuous price rise and hold back amid price downturn" mindset. Trading activity remained sluggish, showing no signs of significant improvement. In the futures market, the most-traded contract 2506 fluctuated. At 10:30 a.m., SS2506 was quoted at 12,690 yuan/mt. In the spot market, the average price of cold-rolled trimmed 304/2B coils was 13,000 yuan/mt in Wuxi and 13,000 yuan/mt in Foshan. The price of cold-rolled 316L/2B coils was 23,850 yuan/mt in Wuxi and 23,850 yuan/mt in Foshan. Currently, the stainless steel market continues to see high supply. To alleviate cost pressure, stainless steel producers have mainly reduced the production of heavily loss-making 300-series stainless steel and increased the output of 200-series and 400-series stainless steel for steel grade structure adjustment. However, market participants generally reported that persistent weakness in downstream consumer demand and cautious purchasing behavior have become the core imbalance constraining market development. In the short term, without effective macro policy support, stainless steel prices are expected to remain weak amid the high market supply.

【SMM Steel Mill Guidance Price】Guidance prices for various series of domestic large stainless steel mills on May 6: 316L cold-rolled prices increased.

[SMM Rebar Daily Review: Weak Supply and Demand Show Signs of Decline, Prices Remain in the Doldrums] Today, rebar futures fluctuated downward, closing at 3,077, down 0.61% from the previous trading day. In terms of spot prices, spot cargo quotes in various regions were largely stable in the morning, with a strong wait-and-see sentiment in the market. In the afternoon, rebar futures fluctuated at lows, with prices in some regions falling by approximately 10-30 yuan/mt. Overall trading performance throughout the day was generally average.

【Brief Review of Domestic Iron Ore Market: Iron Ore Concentrates Prices in Tangshan Region May Remain Stable】The market for iron ore concentrates in Tangshan remained relatively stable during the holiday, with the delivery-to-factory price (dry basis, tax included) for 66% grade ore at 930-940 yuan/mt. Currently, the overall production at mines and beneficiation plants is relatively stable, but the overall process of resuming production is relatively slow. The local iron ore concentrates resources remain relatively tight, providing certain support for local ore prices. Steel mills currently have no maintenance plans, and the pig iron production from blast furnaces at steel mills remains at a relatively high level.

[Price Adjustment of Ordinary Steel for Phase 5-1 of 2025 by Yonggang] Prices of rebar and wire rod both increased

Today, DCE iron ore futures continued to trade in the doldrums, with the most-traded contract I2509 closing at 703.5, down 0.78% for the day. Traders' enthusiasm for selling was moderate; steel mills had largely completed their pre-holiday inventory restocking, resulting in fewer inquiries. The market trading atmosphere was moderate.