The main contract of stainless steel has been running strongly this week, and the market has continued to rise slightly, approaching the 18,000 mark. The open interest has increased significantly, and the overall mood is relatively optimistic.
The recent market of stainless steel has been boosted by the liberalization of the domestic epidemic control policy, which has led to a change in the sentiment of traders, the market’s macro expectations have improved, and the monthly price difference has continued to narrow. At present, there has been a major change in sentiment, which is gradually changing the fundamentals of stainless steel supply and demand:
01 In the short term
From the perspective of the demand side, many merchants and downstream stocking sentiments have risen, the pre-holiday stocking atmosphere has arrived ahead of schedule, and the pressure on prices in the off-season demand has subsided;
02 From the point of view of supply
From the perspective of the supply side, the recent stockpiles in the market are mainly based on the delivery of early orders, but the overall inventory level is not high, and the pressure on steel mills is gradually easing, and it is expected that the subsequent market inventory pressure will not be large;
03 In terms of cost
From the perspective of cost, steel mills have recently purchased a large area of ferronickel. Under the influence of the recent rise in stainless steel prices, profit margins have been maintained, and there is insufficient power to suppress raw materials. The price of raw materials has stabilized and rebounded, which in turn supports the price of stainless steel.
In summary
The recent relaxation of the epidemic control policy has brought about a significant improvement in market sentiment, and expectations are relatively optimistic. The arrival of the stock market ahead of schedule is expected to drive the recent market volatility.