Posted on 10 Nov 2022
China's prices of 304-grade stainless steel lost some ground over November 1-8, according to Mysteel's latest survey. Market sources largely blamed sluggish demand for the decline.
As of November 8, the spot price of 304/2B 2mm stainless steel cold-rolled coil (CRC) in Wuxi, a major stainless trading hub in East China's Jiangsu province, slipped to Yuan 17,600/tonne ($2,428/t), being Yuan 150/t lower on week, according to Mysteel's assessment.
By the same day, the spot price of 304/No.15mm stainless hot-rolled coil (HRC), also in Wuxi, declined to Yuan 16,550/t in-warehouse and including the 13% VAT, down by Yuan 100/t on week.
Some stainless buyers were inactive in replenishing stocks, prompting traders to trim their offering prices so as to facilitate sales, a Shanghai-based analyst said.
For example, Tsingshan Group, the country's largest stainless producer headquartered in East China's Zhejiang province, lowered its list price of 304-grade CRC for November delivery to Yuan 17,100/t on November 8, down by Yuan 300/t from its most recent November list price announced on November 2.
Besides, some stainless traders lost confidence and cut their offering prices in response to the retreat in stainless futures prices, the analyst added.
The most-traded stainless contract on Shanghai Futures Exchange for December delivery closed the daytime trading session of November 8 at Yuan 16,490/t, Yuan 115/t lower than the settlement price on November 1.
Over October 28-November 3, total inventories of 300-series stainless CRC and HRC at commercial warehouses in Wuxi and Foshan in South China's Guangdong province grew by 1.1% on week to 357,204 tonnes.
The analyst predicted that 300-series stainless prices are likely to soften in the near term, as most traders have tendency of clipping their offering prices with few inquiries and orders from end-users while more deliveries from mills.
Source:Mysteel Global
