Supply Remains High with Stable Prices, Stainless Steel Market Continues to Be Sluggish After Labour Day Holiday [[SMM Stainless Steel Spot Daily Review]]

Published: May 6, 2025 17:54

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[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 reported on May 6 that today marked the first trading day after the Labour Day holiday, with SS futures continuing the volatile trend seen earlier, maintaining overall stability. As most traders had just returned from their holidays, market prices largely remained at 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, up 35 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 380-580 yuan/mt. In the spot market, the cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 8,100 yuan/mt. The average price for cold-rolled trimmed 304/2B coils was 13,000 yuan/mt in Wuxi and 13,000 yuan/mt in Foshan. The cold-rolled 316L/2B coils were priced at 23,850 yuan/mt in Wuxi and 23,850 yuan/mt in Foshan. The hot-rolled 316L/NO.1 coils were quoted at 23,050 yuan/mt in both regions. The cold-rolled 430/2B coils were priced at 7,500 yuan/mt in both Wuxi and Foshan.

Currently, the supply side of the stainless steel market continues to fluctuate at highs. To alleviate cost pressure, stainless steel producers are mainly reducing the production of heavily loss-making 300-series stainless steel and increasing the production of 200-series and 400-series stainless steel to adjust their product mix. However, market participants generally reflect that the persistent weakness in downstream consumer demand and cautious procurement 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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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