Stainless Steel Prices Lack Upward Momentum, Market Stalemate Persists [SMM Stainless Steel Daily Report]

SMM September 8 - SS futures showed rangebound strength, fluctuating sideways between 12,850-12,950 yuan/mt and closing at 12,925 yuan/mt. Spot market-wise, while SS futures edged up slightly , stainless steel spot traders exhibited modest upward intentions, yet actual transactions remained mediocre due to weak downstream acceptance, with prices largely stable.

Futures-wise, the most-traded 2510 contract pulled back. At 10:30 am, SS2510 traded at 12,860 yuan/mt, up 120 yuan/mt from the previous session. Wuxi’s 304/2B spot premiums/discounts ranged between 310-610 yuan/mt. In spot markets, Wuxi’s 201/2B cold-rolled coil averaged 8,100 yuan/mt; 304/2B cold-rolled mill-edge coil averaged 13,150 yuan/mt in both Wuxi and Foshan; Wuxi’s 316L/2B cold-rolled coil traded at 25,825 yuan/mt, matching Foshan’s price; 316L/NO.1 hot-rolled coil was quoted at 25,300 yuan/mt in both regions; 430/2B cold-rolled coil stood at 7,550 yuan/mt in Wuxi and Foshan.

The market entered the traditional September-October peak season. The stainless steel sector widely anticipates monthly price uptrends. Although current transactions remain notably constrained by futures volatility, overall demand has strengthened significantly compared to earlier periods. Social inventory declined for the ninth consecutive week, retreating to February levels. Additionally, cost-side high-carbon ferrochrome and high-grade NPI prices continued rising, further elevating stainless steel production costs. However, buoyed by optimistic expectations, September’s planned production is projected to increase further, posing substantial pressure on end-user absorption capacity. Meanwhile, macro policies and futures still heavily influence the market, sustaining significant uncertainty. Subsequent trends will depend on demand recovery pace and the materialization of macro tailwinds.