Frequent News of Production Cuts at Stainless Steel Mills, Further Decline in Prices May Be Hindered [SMM Stainless Steel Daily Review]

Published: May 29, 2025 18:30

Save

[SMM Stainless Steel Daily Review: Frequent News of Production Cuts at Stainless Steel Mills, Further Price Declines May Be Hindered] SMM reported on May 29 that today, the SS futures market exhibited a volatile pattern, with the intraday low touching the 12,600 yuan/mt mark before gradually rebounding amidst fluctuations. However, the overall market remained at low levels. The spot market continued to show weakness, with sluggish transactions due to persistently weak end-use demand from downstream sectors, lacking upward momentum in prices. Notably, several stainless steel mills have recently announced maintenance and production cut plans. As these measures are gradually implemented, the market's supply surplus situation is expected to ease. Meanwhile, the current stainless steel prices have fallen to historical lows, resulting in an inversion between smelting costs and selling prices, with the cost side providing significant support to prices. Against this backdrop, the scope for further significant price declines in stainless steel is relatively limited. In the futures market, the most-traded contract 2507 fluctuated. At 10:30 a.m., SS2507 was quoted at 12,710 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 460-660 yuan/mt. In the spot market, cold-rolled 201/2B coils were quoted at 7,950 yuan/mt in both Wuxi and Foshan; cold-rolled trimmed 304/2B coils averaged 13,100 yuan/mt in Wuxi and 13,100 yuan/mt in Foshan; cold-rolled 316L/2B coils were priced at 24,050 yuan/mt in Wuxi and 24,050 yuan/mt in Foshan; hot-rolled 316L/NO.1 coils were quoted at 23,350 yuan/mt in both regions; in Wuxi and Foshan...

SMM May 29 - Today, SS futures fluctuated, with the intraday low hitting the 12,600 yuan/mt mark before gradually rebounding, yet overall remained at low levels. The spot market continued its sluggish trend, with tepid transactions and lackluster upward momentum due to persistently weak end-use demand. Notably, multiple stainless steel mills recently announced maintenance and production cut plans. As these measures gradually take effect, the supply surplus is expected to ease. Meanwhile, current stainless steel prices have dropped to historical lows, with smelting costs exceeding selling prices, providing strong cost-side support. Against this backdrop, the room for further significant price declines appears limited.

Futures side, the most-traded contract 2507 traded range-bound. At 10:30 am, SS2507 stood at 12,710 yuan/mt, down 40 yuan/mt from the previous trading day. In Wuxi, 304/2B spot premiums/discounts ranged between 460-660 yuan/mt. In spot markets, cold-rolled 201/2B coils in Wuxi and Foshan both traded at 7,950 yuan/mt; cold-rolled 304/2B trimmed coils averaged 13,100 yuan/mt in both cities; cold-rolled 316L/2B coils in Wuxi and Foshan were priced at 24,050 yuan/mt; hot-rolled 316L/NO.1 coils traded at 23,350 yuan/mt in both locations; cold-rolled 430/2B coils in both cities were quoted at 7,500 yuan/mt.

Currently, the stainless steel market has entered the traditional consumption off-season, with markedly weak downstream demand. However, supply remains at high production levels, leaving steel mills with heavy sales pressure and traders grappling with inventory buildup, while social inventory continues to fluctuate at highs. Due to insufficient end-user orders, some futures-spot traders dumped spot cargoes at low prices after completing arbitrage, with some materials circulating only within trade channels without reaching end-users. Although rebounding high-grade NPI prices, historically low stainless steel prices, and cost-side losses provide some support, the combination of seasonal demand contraction and persistent high supply suggests downward pressure may persist in the short term if sales pressure continues.

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.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Feb 6, 2026 18:30

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

Feb 6, 2026 18:30

Feb 6, 2026 18:09

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

Feb 6, 2026 18:09

Feb 6, 2026 17:41

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

Feb 6, 2026 17:41