Stainless steel market remains in a stalemate, with spot prices temporarily stable [SMM Stainless Steel Daily Review]

Published: Jul 8, 2025 17:52

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[SMM Daily Stainless Steel Review: Stainless Steel Market in a Stalemate, Spot Quotations Remain Stable] SMM reported on July 8 that the SS futures market strengthened again today, with the high point nearly reaching the 12,800 yuan/mt threshold. In the spot market, despite fluctuations in futures prices and a pull back in steel mills' guidance prices, retail quotations did not undergo significant adjustments and remained generally stable. Although transaction volumes improved compared to June, the extent of improvement was limited. The downstream market maintained a strong wait-and-see attitude, with transactions primarily relying on concessions from traders' early low-priced inventory. Today, the transaction price of high-grade NPI dropped again, with a stainless steel mill in South China concluding a deal for tens of thousands of mt at 900 yuan/mtu. Affected by expectations for production cuts at stainless steel mills, raw material prices continued to weaken, further eroding the cost support for stainless steel. In the futures market, the most-traded 2508 contract strengthened and rose. At 10:30 a.m., SS2508 was quoted at 12,715 yuan/mt, up 20 yuan/mt from the previous trading day. In the Wuxi region, the spot premiums/discounts for 304/2B stainless steel ranged from 105 to 255 yuan/mt. In the spot market, cold-rolled 201/2B coils in Wuxi and Foshan were both quoted at 7,600 yuan/mt; cold-rolled trimmed 304/2B coils had an average price of 12,725 yuan/mt in Wuxi and 12,725 yuan/mt in Foshan; cold-rolled 316L/2B coils were priced at 23,600 yuan/mt in Wuxi and 23,600 yuan/mt in Foshan; hot-rolled 316L/NO.1 coils were quoted at 22,900 yuan/mt in both regions; cold-rolled 430/2B coils in Wuxi and Foshan were both priced at 710...

SMM July 8 news, stainless steel futures strengthened again today, with the high approaching the 12,800 yuan/mt mark. Spot market-wise, despite futures price fluctuations and the pullback in steel mills' guidance prices, retail quotations remained largely stable without significant adjustments. Although transaction volumes improved slightly compared to June, the recovery was limited, as downstream buyers maintained strong wait-and-see sentiment, with deals mainly relying on traders' earlier low-priced inventory concessions. Today, high-grade NPI transaction prices declined further, with a southern stainless steel mill concluding several 10,000 mt deals at 900 yuan/mtu. Affected by expectations for stainless steel production cuts, raw material prices continued to weaken, further eroding cost support for stainless steel.

Futures-wise, the most-traded contract SS2508 rose. At 10:30 am, SS2508 traded at 12,715 yuan/mt, up 20 yuan/mt from the previous session. In Wuxi, 304/2B spot premiums/discounts ranged between 105-255 yuan/mt. In the spot market, Wuxi and Foshan both quoted 2B cold-rolled 201 coils at 7,600 yuan/mt; 304/2B cold-rolled edge-trimmed coils averaged 12,725 yuan/mt in both cities; 316L/2B cold-rolled coils were priced at 23,600 yuan/mt in Wuxi and Foshan; 316L/NO.1 hot-rolled coils traded at 22,900 yuan/mt in both regions; 430/2B cold-rolled coils were quoted at 7,100 yuan/mt in Wuxi and Foshan.

Currently, the stainless steel market remains in the traditional off-season, with downstream demand failing to match the current supply level. Additionally, uncertainties such as US tariffs continue to weigh heavily, sustaining strong wait-and-see sentiment downstream. Despite widespread losses at steel mills and market reports of production cuts, the historically high supply base from earlier production kept current market supply at elevated levels year-on-year, requiring more time for supply-demand rebalancing. Both mill and social inventories stayed at relatively high levels, with destocking slowing noticeably during the off-season, intensifying shipment pressure for mills, agents, and traders, thereby capping stainless steel price rebounds. Raw material side also faced significant pressure. While high-carbon ferrochrome tender prices held steady due to overseas producer cuts, spot retail prices fell below tender levels. Other materials like high-grade NPI and stainless steel scrap prices weakened markedly, further undermining cost support for stainless steel.The market is waiting to see how the supply-demand relationship will recover after stainless steel mills implement production cuts.

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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