SHANGHAI, Jun 22 (SMM) – The most-traded stainless steel futures continued to pick up yesterday (June 21), and once recorded a gain of 3.29% in intraday trading despite retreat later in the day. The contract closed the day with an increase of 1.97% and stood at 18,130 yuan/mt.

In the spot market, the spot price of 304/2B (coil, burr edge) stood at 18,650 yuan/mt on average in Wuxi market, up 0.81%.

The spot prices in Wuxi and Foshan both rose on June 21, and the quotes of 304 stainless steel in Wuxi were mostly between 18,200-18,400 yuan/mt with signs of further increase, and the prices of 304 cold rolled coil also stood stable at 18,000 yuan/mt. The transactions in Wuxi were cheering, and the stainless steel futures prices also rebounded to the 18,000 yuan/mt level. SMM believes that the uptrend is likely to extend until this weekend.

According to SMM research, steel mills are likely to cut the production in both June and July, alleviating the supply pressure to some extent. The downstream demand is recovering slowly, and the market sentiment picks up slightly. That being said, the situation of oversupply may ease gradually. As such, stainless steel prices will hover at a high level.

For queries, please contact Frank LIU at liuxiaolei@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn