Today, the Dce experienced a high-level retreat, with the main contract I2601 settling at 794, down 0.19% compared to the previous trading day. Traders followed market trends in selling, while steel mills reduced inquiries and showed moderate purchasing interest.

[SMM Stainless Steel Daily Review: Macro Tailwinds Fade in Short Term, SS Futures Pull Back, Spot Stainless Steel Transactions Weaken] SMM November 28: SS futures showed a further declining trend. Stainless steel fundamentals remained weak with insufficient market confidence, and prices fell further today, with the low again approaching 12,300 yuan/mt. In the spot market, sentiment improved earlier this week driven by macro tailwinds, and transactions increased noticeably before mid-week. However, as futures pulled back, cautious wait-and-see sentiment again dominated the market. Coupled with consecutive declines in high-grade NPI prices, expectations weakened again, and prices remained largely stable during the week. Social inventory saw some buildup this week, up 0.64% WoW to 946,000 mt. The most-traded SS futures contract declined. At 10:30 a.m., SS2601 was quoted at 12,355 yuan/mt, down 40 yuan/mt from the previous trading day. In Wuxi, spot 304/2B premiums/discounts were in the range of 365-565 yuan/mt. In the spot market, Wuxi cold-rolled 201/2B coil averaged 8,025 yuan/mt; cold-rolled mill edge 304/2B coil averaged 12,625 yuan/mt in Wuxi and 12,650 yuan/mt in Foshan; cold-rolled 316L/2B coil was 23,800 yuan/mt in Wuxi and 23,800 yuan/mt in Foshan; hot-rolled 316L/NO.1 coil was quoted at 23,250 yuan/mt in Wuxi; cold-rolled 430/2B coil was 7,600 yuan/mt in both Wuxi and Foshan. Recently, after the US Fed released dovish signals, the possibility of an interest rate cut in December...

[Domestic Iron Ore Brief: Iron Ore Concentrate Prices in West Liaoning May Fluctuate] Iron ore concentrate prices in west Liaoning are relatively stable, with ex-factory prices for Fe66% iron ore concentrates (wet basis, tax-excluded) at 750-760 yuan/mt. Due to inspections by the National Security Administration, production at some mines and beneficiation plants has been affected, and overall iron ore concentrate resources remain tight.

[SMM Survey on Operating Rate of Steel Mills Using Externally Purchased Billets] According to the SMM survey, as of November 28, the operating rate of steel mills using externally purchased billets, primarily producing construction materials, was 20.42%, up 3.49 percentage points MoM from October, but down 5.79 percentage points YoY.

SMM November 27 - This week (November 21-27, 2025), the total inventory in the two major stainless steel markets of Wuxi and Foshan showed a slight buildup trend, increasing from 940,000 mt on November 20, 2025 to 946,000 mt on November 27, up 0.64% WoW.

Conclusion: The supply-demand imbalance has accumulated to a relatively limited extent, with relatively small room for further deterioration MoM from November. In the short term, focus on the most-traded hot-rolled coil futures contract at 3,230–3,330. In December, coupled with rising macro expectations, steel prices may have room to rise before the meeting, but the upside is likely to be limited, mainly due to persistent destocking pressure for sheets & plates and relatively weak sales performance in the market, which may also constrain a smooth price increase.