Posted on 02 Aug 2024
Chinese prices of 304-grade stainless steel experienced slight improvements for both cold-rolled coil (CRC) and hot-rolled coil (HRC) during July 24-31, driven mainly by firmer cost support and decreasing stock levels in major commercial warehouses.
Mysteel's latest assessment revealed that the price of 304/2B Hongwang 2*1240mm stainless CRC and 304/No.1 Tsingshan 5*1520mm stainless HRC in Wuxi, Jiangsu, had increased by Yuan 50/tonne ($6.9/t) on week to reach Yuan 14,000/t and Yuan 13,450/t in-warehouse, including the 13% VAT, respectively, as of July 31.
The increase was primarily attributed to the firming price of nickel pig iron (NPI), a key ingredient in stainless steel production, which provided more cost support for the rise in austenitic stainless prices. Mysteel's latest survey indicated that by July 31, the price of 8-10% grade NPI in Jiangsu had increased to Yuan 1,050/mtu, including delivery and 13% VAT, up by Yuan 15/mtu from July 24.
In addition, previously non-negotiable warehouse receipts on the Shanghai Futures Exchange (SHFE) for high-quality 304-grade CRC saw active trading in the spot market over the past week. This activity led to a notable decline in stocks of 300 series stainless CRC in 89 commercial warehouses in Wuxi and Foshan, Guangdong, to 478,978 tonnes, decreasing by 3.74% over the week as of August 1. Consequently, total stainless stocks of CRC and HRC fell by 2.57% to 696,114 tonnes, according to Mysteel's latest survey.
Improved fundamentals also boosted sentiment among futures market participants. On the SHFE, the most-traded stainless contract for September delivery gained Yuan 100/t during the daytime trading session on August 1, according to the exchange's data.
Encouraged by the rise in futures, leading domestic stainless makers increased their list prices for 304-grade stainless steel on the same day. For instance, Tsingshan Group, the world's largest stainless producer and based in Zhejiang province, raised its list price for 304 Hongwang stainless CRC to Yuan 13,800/t on August 1, up Yuan 100/t from the day before.
Source:Mysteel Global
