Market confidence in stainless steel is insufficient, and prices have broken historical lows again [SMM Stainless Steel Daily Review]

Published: Jun 23, 2025 17:19

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[SMM Stainless Steel Daily Review: Stainless Steel Market Lacks Confidence, Prices Break Historical Lows Again] SMM News on June 23: Today, the SS futures market saw a significant decline near the close of the daytime session, falling below the previous lows and hitting a new five-year low. The spot market continued its sluggish trend from the previous period, with Delong further lowering its stainless steel plate prices. Downstream customers remained cautious, making it difficult to sell goods and close transactions. Under the pressure to sell, traders had to reduce prices to stimulate transactions, but the downward price trend persisted. Meanwhile, the transaction price of ferronickel further declined today, dropping to 910 yuan/mtu, pushing down the cost support for stainless steel. In the futures market, the most-traded 2508 contract fell further. At 10:30 a.m., SS2508 was quoted at 12,505 yuan/mt, up 15 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 265-465 yuan/mt. In the spot market, the cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 7,650 yuan/mt; the cold-rolled mill edge 304/2B coils had an average price of 12,700 yuan/mt in Wuxi and 12,700 yuan/mt in Foshan; the cold-rolled 316L/2B coils were priced at 24,000 yuan/mt in Wuxi and 24,000 yuan/mt in Foshan; the hot-rolled 316L/NO.1 coils were quoted at 23,350 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 stainless steel market is in the traditional off-season for consumption, with downstream demand remaining sluggish. Despite enterprises generally facing losses, some steel mills...

SMM News on June 23: Today, SS futures prices fell sharply during the daytime session, breaking below the previous low and hitting a new five-year low. The spot market continued its sluggish trend from the previous period, with Delong once again lowering its stainless steel plate prices. Downstream customers remained cautious, making it difficult to sell and close deals in the market. Under the pressure to sell, traders had to cut prices to stimulate transactions, but the downward price trend persisted. Meanwhile, the transaction price of nickel iron also fell further today, dropping to 910 yuan/mtu, further weakening the cost support for stainless steel.

In the futures market, the most-traded contract 2508 continued to decline. At 10:30 a.m., SS2508 was quoted at 12,505 yuan/mt, up 15 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 265 to 465 yuan/mt. In the spot market, cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 7,650 yuan/mt; cold-rolled trimmed 304/2B coils had an average price of 12,700 yuan/mt in Wuxi and the same in Foshan; cold-rolled 316L/2B coils were priced at 24,000 yuan/mt in Wuxi and the same in Foshan; hot-rolled 316L/NO.1 coils were quoted at 23,350 yuan/mt in both regions; and cold-rolled 430/2B coils were priced at 7,500 yuan/mt in both Wuxi and Foshan

. Currently, the stainless steel market is in the traditional off-season, with downstream demand remaining sluggish. Despite the widespread losses faced by enterprises, some steel mills have already begun to implement production cuts. However, due to the large production base in the previous period, current market supply remains at a historically high level for the same period, exacerbating the oversupply contradiction. The selling pressure on stainless steel mills, agents, and traders has surged. Both in-plant inventory and social inventory remain high, with widespread market pessimism. Traders are scrambling to sell, leading to a continuous decline in stainless steel quotes. The raw material side is also under significant pressure. Affected by expectations for production cuts at steel mills, the prices of raw materials such as high-grade NPI and high-carbon ferrochrome have also weakened simultaneously, further eroding the cost support for stainless steel. The market generally expects stainless steel mills to introduce further production cut plans to rectify the current supply-demand imbalance.

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