SMM, September 1 - SS futures held up well, extending yesterday's strong performance, with prices briefly surging and successfully breaking through the 13,000 yuan/mt mark. On the spot market, confidence was boosted by the continuous rise in SS futures, while the morning price hikes by major stainless steel mills also provided momentum, driving spot quotations upward. However, downstream acceptance of high prices remained low, with elevated offers resulting in sluggish actual transactions. In the afternoon, traders offered discounts to facilitate deals, leading to improved trading activity. Although the market generally holds bullish expectations for stainless steel in September, downstream end-use demand has yet to recover, with end-users maintaining a cautious wait-and-see approach.
Futures side, the most-traded 2510 contract fluctuated. At 10:30 am, SS2510 traded at 12,965 yuan/mt, up 105 yuan/mt from the previous session. In Wuxi, spot premiums/discounts for 304/2B ranged between 305-605 yuan/mt. In the spot market, Wuxi's 201/2B cold-rolled coils averaged 8,100 yuan/mt; 304/2B cold-rolled mill-edge coils averaged 13,250 yuan/mt in both Wuxi and Foshan; Wuxi's 316L/2B cold-rolled coils were priced at 25,675 yuan/mt, matching Foshan's; 316L/NO.1 hot-rolled coils were quoted at 25,150 yuan/mt in both regions; 430/2B cold-rolled coils were uniformly priced at 7,450 yuan/mt in Wuxi and Foshan.
Building on last week's rebound in SS futures, early this week saw further upward momentum driven by macro and news-driven tailwinds, successfully breaking through last week's resistance. This provided some support to market confidence.Although spot market acceptance of high-priced material remained subdued, active discounting and sales promotions by traders led to slight improvements in overall inquiries and transactions. Notably, social inventory of stainless steel has declined for eight consecutive weeks, with current levels pulling back to early-year figures, effectively alleviating mills' sales pressure. Additionally, recent price increases for key raw materials like nickel, chromium, and molybdenum have further elevated stainless steel's cost center. Meanwhile, rising expectations for US Fed interest rate cuts and proactive "anti-rat race" policies have bolstered overall market optimism. However, downstream end-use demand remains incomplete in its recovery, coupled with anticipated increases in September stainless steel production and continued futures volatility, leaving room for market fluctuations. Therefore, close attention should be paid to the implementation of macro policies and the actual progress of demand recovery.
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