Posted on 09 Nov 2023
The prices of 304-grade stainless steel in China under Mysteel's assessment showed a mixed trend during October 31-November 7, as a result of varied fundamentals of different products, market sources shared.
For example, the spot price of 304/2B 2mm stainless cold-rolled coil (CRC) in Wuxi, a major stainless trading hub in East China's Jiangsu, remained steady on week at Yuan 15,300/tonne ($2,101/t) in-warehouse and including the 13% VAT on November 7, Mysteel's survey showed.
The spot price of 304/No.1 5mm stainless hot-rolled coil (HRC) in Wuxi, however, continued its previous downtrend, falling another Yuan 50/t on week to reach Yuan 14,250/t in-warehouse and including the 13% VAT on November 7.
China's stainless market stayed generally tepid of late, featuring downstream users' low demand for most stainless products, including 304-grade products, a market watcher in Shanghai commented.
On the other hand, the cost support for the prices of 304 products from their key raw material weakened recently. On November 7, the price of 8-10% grade nickel pig iron in Jiangsu province under Mysteel's assessment dropped to Yuan 1,060/mtu including delivery and the 13% VAT, down by Yuan 55/mtu on week.
Nevertheless, the prices of 304-grade CRC were able to stay unchanged at the level a week earlier instead of falling persistently as those of hot coil with the same grade, because the former products earned support from its reduced supply in the market, according to the source.
Meanwhile, "the deliveries of 304-grade HRC to traders' warehouses increased notably in the past week," he observed.
On the other hand, the source projected that some stainless steelmakers may resume their production of 300-series products this month, after their profit margins improve amid lower production costs. In this case, the prices of 304-grade stainless steel may face more downside risks on more stainless supplies in the market, according to him.
Source:Mysteel Global
