Posted on 06 Feb 2026
Spot prices for austenitic stainless steel fell in major Chinese markets during Mysteel's survey period of January 29-February 4, pressured by a correction in futures prices and dwindling activity ahead of this month's Chinese New Year holiday.
On February 4, Mysteel assessed the spot price of 304/2B Hongwang 2*1240mm stainless cold-rolled coil (CRC) in East China's Wuxi at Yuan 14,150/tonne ($2,039/t) in-warehouse and including the 13% VAT, down by a significant Yuan 350/t from a week earlier.
The downturn followed a sharp drop in stainless futures on the Shanghai Futures Exchange (SHFE), which hit limit-down on February 2, Mysteel Global notes. On February 4, the most-traded SHFE stainless contract for April delivery closed the daytime trading session at Yuan 13,930/t, lower by a huge Yuan 535/t from the previous week.
The futures slump dented trader confidence, triggering a wave of discounting to clear inventories. "The sudden drop in futures spread pessimism, flooding the market with low-priced offers," said a Foshan-based analyst. "Only deeply discounted cargoes are attracting any inquiry."
The decline came even as production costs for the stainless makers edged higher. For integrated mills using outsourced high-grade nickel pig iron, the average cost to produce 304-grade CRC rose by around Yuan 18/t on week to Yuan 15,308/t between January 29-February 4, according to Mysteel's assessment. Consequently, the average gross profit margin for these mills shrank sharply by Yuan 307/t on week to just Yuan 120/t in the same period.
With the extended Chinese New Year break starting February 15, market activity has largely quietened, according to market sources. Most traders and agents are now concentrating on wrapping up existing orders and show little eagerness to book new sales, the sources said, adding that the disinterest is further suppressing trading volume and price support.
Source:Mysteel Global
