SDIC Anxin's core view
Stainless steel prices fluctuated this week, and futures rose at the end of the week, but the spot price was insufficient, the arrival of steel mills was limited during the week, traders had concessions and promotions, and the pressure on the social treasury was eased. The follow-up mainly focuses on the rhythm of steel mill production scheduling, the domestic macroeconomic policy stimulus, and the expected stainless steel shock operation in the future. Stainless steel water pipe|double clamp pipe fittings|304 stainless steel water pipe brand|Foshan Yongsui Stainless Steel Co., Ltd
Stainless steel futures prices this week strong shocks, this week's stainless steel futures trading volume compared with last week changed little, but as the futures prices continued to rise during the week, the number of positions rose significantly, and the main increment in the far month contract, the market has a relatively large divergence in the price rise, the end of the week as a whole still maintains a relatively cautious attitude.
The main contract of the stainless steel market closed at 14230 this week, a weekly increase of 1.32%, and the highest price of the week was 14285.
01
In terms of the spot market
In the spot market, the spot price of stainless steel rose slightly this week, and the spot price of stainless steel was more stable than the futures price during the week. The downstream consumer demand side is relatively light, mostly based on rigid demand procurement, traders have a price sentiment, and some have concessions to facilitate transactions.
The price of raw materials remained relatively stable, the pressure on the production cost of steel mills eased, and the profits of steel mills were at the margin as stainless steel prices rebounded during the week.
The July production schedule of steel mills has declined, and the arrival pressure of the market outlook is expected to slow down to a certain extent, the market arrival volume has also decreased during the week, the social inventory continues to decline, and the warehouse receipts continue to increase under the rise of futures.
At present, the market is still in the background of oversupply, and the steel mill production reduction in July may ease the supply pressure, and the market needs to pay close attention to the production scheduling plan of the steel mill, the arrival rhythm of the market and the speed of the destocking of the social treasury.
02
Week-on-week average price analysis
03
Futures warehouse receipts
This week, the inventory of stainless steel registered warehouse receipts on the Shanghai Futures Exchange increased by 3,463 to 196992 tons compared with last week. This week, the number of warehouse receipts continued to increase. Warehouse receipt resources bring great pressure to market inventory, the market digestion capacity is limited, and the inventory removal speed is slow.
Sum up
To sum up, stainless steel prices fluctuated this week, and raw material prices fell under pressure but remained at a high level.
The production profit of steel mills is at the cost margin, steel mills are expected to reduce production in July, and the overall transaction atmosphere of the market is average. The performance of the downstream consumer demand side is still sluggish, but the arrival of steel mills decreased during the week, traders have concessions and promotions, and the social treasury has declined.
The market outlook pays attention to the speed of destocking and the subsequent production scheduling and arrival rhythm of steel mills. It is expected that the stainless steel will fluctuate in the future.