Posted on 13 Jun 2025
Prices of both cold-rolled (CRC) and hot-rolled (HRC) 304-grade stainless steel in China have dropped to their lowest levels since April 2020, after Tsingshan Group - the country's largest stainless steelmaker - abruptly cancelled its price floor for 304-grade stainless flats (including coils and plates) sold by its agents.
The removal of the price's bottom limit effective from June 10 sent shockwaves through China's already fragile stainless market, struggling amid the usual summer lull. Market sources noted that agents and traders scrambled to reduce inventories by slashing their offering prices that day.
On June 10, Mysteel assessed the in-warehouse prices (including tax) of 304-grade stainless CRC and HRC in East China's Wuxi at Yuan 12,700/tonne ($1,767.9/t) and Yuan 12,250/t respectively, both marking their lowest levels in more than five years.
The futures market also reacted sharply. On Tuesday, the most-traded August stainless steel contract on the Shanghai Futures Exchange fell by 1.46% from Monday's settlement, closing the daytime session at Yuan 12,460/t.
"Some warrant stocks of 304-grade stainless CRC were even transacted at as low as Yuan 12,400/t on Tuesday," a market observer said.
Facing the rapid price deterioration, Tsingshan Group partially reversed its policy 24 hours later. On June 11, the company reinstated price floors for 304-grade stainless coils while keeping the limits off for stainless plates, a move that immediately helped stabilize market sentiment.
On the same day, Mysteel assessed the price of 304-grade stainless CRC in Wuxi at Yuan 12,800/t, reflecting a modest rebound. However, this was still Yuan 300/t lower than the previous week.
Despite the brief price rally, market analysts are undecided about whether the recovery can be sustained, citing weak downstream demand. As of June 12, Mysteel's survey of 89 warehouses in six major Chinese cities showed that austenitic stainless steel inventories had increased by 0.81% week-on-week to 686,309 tonnes.
Source:Mysteel Global
