According to the news on October 19, the price of stainless steel futures fluctuated today. Steel mills have focused on cutting production and reducing inventories, which is good for support. A model of near strength and distant weakness in the market is identified. At closing, the November stainless steel contract closed at RMB40/t to RMB14,860/t and the December contract closed at RMB15/t at RMB14,740/t.
Futures prices bounced back and forth throughout the week, while spot prices fell slightly. Market trades were average in the first two days. According to statistics, stocks of 300 series stainless steel sheets have been depleted this week from 19,000 tons to 478,000 tons. The resources of both cold and hot rolling are significantly exhausted. Inventories fell from high levels after the holiday. The scale of inventory reduction is encouraging and increases confidence in market trading.
In the afternoon, traders' willingness to ship goods at low prices decreased, and the main quotation remained stable at 14,650 yuan per ton. Some clients said the deal was acceptable, but overall they maintained tight purchasing pressures.
At present, due to high costs and poor order acceptance, many steel mills have issued production reduction and maintenance plans, and the demand for raw material procurement has decreased. The current prices of raw materials have dropped significantly, and the cost support for stainless steel stainless steel sheet has moved down. Short-term prices for stainless steel may fluctuate.
