After the price of stainless steel in 2022 experienced a sharp rise in early March, the focus of spot stainless steel prices began to gradually move down at the end of March, from a price of around 23,000 yuan to around 20,000 yuan/ton at the end of May. The speed of price decline has increased significantly, breaking through 20,000 yuan in just a few days, below 19,000 yuan, and once below 18,000 yuan.
What is the reason for the sharp drop in stainless steel prices? Why did the price of stainless steel drop sharply in June but the transaction was even worse? The main reasons for the decline in stainless steel prices this time are the continuous decline in the futures market, weak demand and serious shortage of inventory pressure.
From the end of March to the present, the spot trading of stainless steel in Wuxi has remained under pressure as a whole. In April and May, affected by the covid-19 control and logistics restrictions, the downstream demand for stainless steel has been seriously affected, with a cumulative decline of about 4% in these two months. After entering June, the impact of the off-season consumption has increased significantly, and the weakness of the downstream demand side has exacerbated the concern of the stainless steel spot market. Under the pessimistic atmosphere of the market outlook, the decline of the stainless steel market has accelerated, and the decline has exceeded 4-5 in just half a month. two-month decline.
The large social inventory is also a factor for the drop in spot prices. As of June 10, the total social inventory of stainless steel in the national spot market was 905,200 tons, a year-on-year increase of 16.40%. The total inventory of 300 stainless steel was 514,500 tons, a year-on-year increase of 31.79%.
The off-season effect of consumption persists, will stainless steel prices continue to fall? In fact, the most important factor affecting the market is demand. Demand is king. Without the support of demand, the upstream cost support is very weak. In addition, seasonal factors and export factors also affect the price changes.
Post time: Jun-27-2022