Chinese stainless steel prices slide but expected production cuts could spark rebound

China’s domestic stainless steel prices softened over the week to Wednesday July 7 on losses in the nickel market and a drop in demand, though participants expected this to be temporary.

The three-month nickel contract on the London Metal Exchange ended the official trading session on Wednesday at $18,317 per tonne, down by $123 per tonne from $18,440 per tonne a week earlier.
Stainless steel cold-rolled coil 2mm grade 304 domestic (Wuxi): 17,000-17,800 ($2,627-2,750) per tonne, widened downward by 200 yuan per tonne
A few sellers lowered their prices to generate more sales during the week, but others rolled over theirs amid a drop in supply from mills. This caused widened the assessment range for the week.
End users bought in limited quantities because current prices for stainless steel were too high for them to generate reasonable profits from their finished products, sources said.

But market participants think stainless steel...


Jessica Zong

July 08, 2021

04:36 GMT