Geopolitical disturbance cost support, stainless steel spot market remains largely steady in operation

Stainless steel futures market stops falling and rebounds. There is relatively high uncertainty regarding news related to geopolitical conflicts, and the futures market will still maintain a range-bound trading trend; as of the lunchtime close, the quoted price was 14,395 yuan/ton. In the spot market, due to the transmission of volatility in the SS futures market, early-week downstream demand driven by just-needed purchases has basically been released; with the futures market’s arbitrage window closing, stainless steel spot trading subsequently fell. Currently, stainless steel mills are in a cost-inverted situation, and with cost support still in place, mills’ willingness to hold firm on prices remains strong; spot prices largely remain stable.

SS stainless steel futures front-month contract stops falling and rebounds. At 10:15 a.m., SS2605 was quoted at 14,355 yuan/ton, down 85 yuan/ton from the previous trading day. In Wuxi, the spot premium/discount for 304/2B is in the 165–365 yuan/ton range. In the spot market, the average price of Wuxi cold-rolled 201/2B coils remained unchanged; for cold-rolled rough-edged 304/2B coils, the Wuxi average price fell by 50 yuan/ton, and the Foshan average price also moved within a +/-50 yuan/ton range downward; the Wuxi average price for cold-rolled 316L/2B coils remained unchanged; for hot-rolled 316L/NO.1 coils, the Wuxi quotation remained unchanged; and the cold-rolled 430/2B coils in both Wuxi and Foshan remained stable.

Currently, the stainless steel market has entered the traditional peak consumption season. Downstream terminal transactions have stayed stable, but market sentiment has become more cautious. Terminal companies lack willingness to stock up; procurement is mainly led by replenishment as needed, and the lively transaction pattern expected in a peak season has not emerged. Overall demand is steady and neutral. (Shanghai Metals Market)