Futures surge driving prices higher, stainless steel prices remain relatively strong, spot transactions are weak

The SS futures market shows a strong rally with prices rising after pushing higher. Driven by news related to Indonesian nickel ore, Shanghai nickel and SS futures both surged significantly. SS once again broke above the highest level since 2023, reaching as high as 15,230 yuan/ton. As of the close of the midday session, the SS main contract was quoted at 15,160 yuan/ton.

In the spot market, supported by strength in the futures market, stainless steel spot quotes rose in tandem. Although prices moved up in the short term, downstream end users have not yet fully accepted the increase due to a cautious wait-and-see sentiment. At the same time, low-priced spot sources have become difficult to find, and with stainless steel social inventories continuing to decline, traders are facing relatively less inventory pressure.

The SS futures main contract is strengthening and pushing higher. At 10:15 a.m., SS2605 was quoted at 15,165 yuan/ton, up 320 yuan/ton from the previous trading day. In the Wuxi market, the 304/2B spot premium/discount was in the range of -145 to -55 yuan/ton. In the spot market, the average price of Wuxi cold-rolled 201/2B coils was unchanged. For cold-rolled untrimmed 304/2B coils, the average price in Wuxi rose by 50 yuan/ton, and the average price in Foshan rose by 50 yuan/ton. Wuxi cold-rolled 316L/2B coils rose by 200 yuan/ton. Hot-rolled 316L/NO.1 coils in Wuxi were up 100 yuan/ton. Cold-rolled 430/2B coils in both Wuxi and Foshan remained stable. (SMM)