Posted on 21 Jan 2025
China's stainless steel market saw continued upward momentum during the week of January 10-17, particularly for 200-series and 300-series stainless flats, spurred by the strong performance of futures on the Shanghai Futures Exchange (SHFE).
On January 17, Mysteel assessed the spot price of 304-grade stainless cold-rolled coil (CRC) in Wuxi, East China's largest trading hub, at Yuan 13,050/tonne ($1,781.7/t) in-warehouse, including tax, higher by Yuan 50/t from the previous week.
The futures market experienced an even more significant rise, with the most-traded stainless contract on the SHFE for March delivery gaining Yuan 195/t week-on-week and closing Friday's trading session at Yuan 13,320/t.
The positive sentiment extended to the 200-series market, with Mysteel assessing the price of 201/J1 stainless CRC in Wuxi at Yuan 8,000/t in-warehouse, including tax, marking a Yuan 100/t increase compared with the previous week.
The buoyant market sentiment that the rises stimulated encouraged more stainless fabricators to enter the market for their last round of purchases ahead of next week's Chinese New Year (CNY) holiday, Mysteel Global noted. The entry of these users contributed to a slight uptick in market activity during the period.
Meanwhile, Mysteel's survey of 89 commercial warehouses across six Chinese cities showed a 1.65% weekly decrease in total stocks as of January 16 to stand at 889,700 tonnes. Within this total, inventories of CRC declined by 0.67% week-on-week to 557,700 tonnes, while those of hot-rolled coil (HRC) were lower by a more notable 3.25% at 332,000 tonnes.
In South China's Foshan market, trading activity slowed, contributing to the smaller decrease in CRC stocks there. Sources attributed this slower decline to diminished buying interest among end-users, particularly for 304-grade CRC, where higher prices offered by traders had dampened their keenness for purchasing.
Mysteel assessed the price of 304-grade CRC in Foshan at Yuan 13,150/t in-warehouse last Friday, up by Yuan 150/t on the week.
Looking ahead, market activity is expected to slow further this week, with most construction companies already halting operations for the CNY holiday. Logistics disruptions are also limiting the flow of goods, which, in turn, is restraining spot market trading and hampering deliveries from stainless producers to warehouses, Mysteel Global observed.
Source:Mysteel Global
