In November, under the stimulus of macro and news surface, the futures nickel stainless steel plate price high shock, and the industry demand weakening pressure, the trend deviates from the plate. According to the order distribution of Hua Steel Co., LTD., the mainstream stainless steel factories in China have cut production and carried out annual maintenance in more than November-December and January 2023, and the nickel demand has declined. The price of nickel iron has started to fall.
Since late October, the consumption of stainless steel market has weakened, and the price has started to fall. Under the double pressure of cost and sales, in the middle of November, domestic mainstream stainless steel factories have announced production reduction and overhaul plans, among which 300 series in November is expected to reduce 137,000 tons, and in December is expected to reduce 139,000 tons.
As of 29th, Wuxi ,which Hua steel stainless steel location , private market 304 cold rolled gross base 16,550 yuan/ton, spot raw material price calculation stainless steel profit rate 1.5%. Although there is no inventory in the mainstream market of stainless steel at present, there is still a part of the in-transit inventory has not yet shown, and there is also pressure to release the inventory in the future. In addition, some steel mills are affected by the epidemic closed-loop production, and the factory inventory accumulates, leading to the difference between the social inventory and the actual situation.
The short-term cost support of stainless steel is weak and stable, and near the end of the year, the downstream steel demand is even weaker. Some steel mills have significantly lowered the new round of futures guidance price in December, and the market is full of bearish sentiment under the order is not smooth, coupled with the release of cold rolling capacity in Indonesia to domestic, stainless steel is still expected to fall risk.
