The stainless steel market fundamentals

In December 300 series stainless steel spot prices fall after rise first, the highest and the lowest price is in 1000 yuan/ton. First of all, the LME nickel, spot nickel, nickel iron price soared after back, such as stainless steel cost support; Second, LME nickel tumbling mentality influence to the market, the market environment is relatively low; Finally, the market resources, and the demand is not improving, the sharpening contradictions between the supply and demand. In addition, traders at the end of repayment pressure, drained, clean up the inventory is the mainstream.

In late November, stainless steel prices rising, December order ideal steel mills, at the same time, some steel mills to achieve full-year target volume, increase the production and sales. Thus appeared the arrival of the goods in mid-december market volume increased significantly, especially in foshan area 304 cold roll material supplement, other products also maintain normal upper level, leading to social inventory showed increasing trend.

For stainless steel production in January, the steel mills in January now largely production possibility is not big, but does not rule out some 300 control system mainstream steel plant production rhythm, slow delivery speed, to control the market changes. But for social inventory is difficult to a significant decline in January, social inventory pressure remained before the middle of January, after the late social inventories are expected to ease.

For January, now look at the LME nickel is still in the down channel, market resources also need to digest, and demand is still not improved, so the market spot prices, there is still a small drop in the short term space, low prices will continue to the market.

Through the interpretation for the market mainstream varieties of stainless steel, is expected in January nickel stainless steel by the cost prices, market demand growth slows, the increasing market inventory pressure will be eased, and 400 series stainless steel prices remain stable as the main melody.