Stainless Steel Market: Unperturbed by Market Fluctuations

Recently, the stainless steel market has been likened to a "pig that is not afraid of boiling water," suggesting a resilience to market volatility. Despite significant swings in futures, the spot market has remained relatively stable, with fluctuations not exceeding 400 units this month.

Key Highlights:

• Rumors of steel mill shutdowns have led to improved transactions in the afternoon.
• A meeting was held in Fujian regarding the regulation of crude steel production capacity, impacting the stainless steel sector.

On June 18, 2024, news from the Foshan market indicated that despite the futures market's significant movements, the spot market for stainless steel has been slow to react, with narrow fluctuations and even periods of stagnation. This has led to concerns about operational costs, especially for larger companies.

However, the mood shifted on "Red Tuesday," with the news of a stainless steel mill in Liyang suspending hot rolling operations. This led to a slight increase in the afternoon futures market, and the Foshan market saw a significant uptick in orders for 304 cold-rolled stainless steel for June and July, clearing the gloom of previous periods.

Delong also brought good news, as Foshan finally received a new shipment of goods. Over 7400 tons of Delong 304 cold-rolled coils were shipped from Yancheng and are expected to arrive in Foshan on June 23. Coupled with the 6000 tons that arrived over the weekend, the nearly 15,000 tons of goods arriving in less than two weeks have been a headache for merchants.

Fortunately, the goods received in these shipments have been of good quality. Although the quantity is less, the quality is high, which is a positive aspect. Merchants have expressed a desire for prices to drop so that they can receive goods more quickly, as the current situation is quite challenging.

The "South Flood and North Drought" situation in June has had a significant impact, causing property damage and casualties, and also suppressing demand for stainless steel. The situation is likened to the oversupply of Qingshan cold-rolled products and the scarcity of Delong cold-rolled products in Foshan.

Despite the challenges in the stainless steel market, the sentiment is that being able to live healthily is more important than any financial loss. There is a collective hope for favorable weather and national prosperity.

Statistics released by the National Bureau of Statistics show that the economy continues to improve. This positive trend is hoped to extend to the stainless steel industry as well.