As the dominant wind indicator of stainless steel prices, Lun Nickel has started to rise for four consecutive trading days since last week and has returned to above 17,000 US dollars. The total increase has been nearly 1,200 U.S. dollars. From the current trend, the rebound of LME nickel has started, and there is a technical demand to move towards 17,400 U.S. dollars. The 300 series of stainless steel prices have not seen obvious trends, only a few businesses slightly raised the offer, while the overall market is still weak, maintaining low-cost shipments become a consensus of the business.

Why is it difficult for stainless steel sheet to rise?

First, the contradiction between supply and demand is sharp, and prices are difficult to change.

Whether the price changes or not is definitely related to the transaction. Supply and demand factors are the main factors that determine the price of stainless steel sheet. The current slump in demand for the stainless steel industry is an indisputable fact. The iron and steel industry is about to enter the traditional off-season, and the operating rate of downstream household appliances and auto industries is seriously insufficient. Although the country has successively introduced a new round of home appliance subsidies and auto-to-country policies, The impact on the stainless steel sheet market is more reflected in the psychological level, and it is difficult to effectively transfer the demand to the stainless steel market in the short term. Most stainless steel products companies still worry that the stainless steel market will continue to decline and are not willing to pressure inventory. Therefore, the domestic stainless steel industry still has a conflict between supply and demand. Sharp, stainless steel sheet prices will not be fundamentally changed.

Secondly, the cost is high and the company maintains transactions.

In the short term, the market has the need to compensate for the decline in nickel prices in the previous period. Nickel prices have been falling since earlier, but stainless steel sheet products have been relatively strong due to the high cost of getting goods and some resource inventories are in short supply. The price decline is only one or two hundred yuan. Some merchants' prices have been maintained at 18,000 yuan / ton above, because the quote itself is high, so the stability of the nickel price to ensure normal trading volume.

In the end, the price of steel mills plays a significant role in the direction of spot prices.

When there is no change in the ex-factory price of the steel mill, the market price will not change much. The weakening of stainless steel raw material prices has caused the cost of steel mills to continue to move downwards, and the extent has been significantly expanded. The bottom line of the marginal profit of steel enterprises has not yet been broken, so the willingness to reduce production is insufficient, resulting in sustained high supply. The data show that stainless steel industry PMI production and The difference in the new orders index has been increasing for three consecutive months. On the other hand, steel factory prices and spot prices are seriously upside down. Take 304 cold rolling of the mainstream as an example. At present, the steel mills' prices are all above 19,000 yuan/ton, but the current market price is only about 18,000 yuan/ton, and the two are upside down. Nearly a thousand dollars. After entering the traditional off-season, steel traders have operated at low inventory levels and the shipments have been significantly reduced. Under the continuous pressure of sales, the steel prices in July have been difficult to increase, and on June 11 Baosteel significantly reduced the July ex-factory price. It also caused the market to have hidden advantages in the stainless steel plant in July.

At present, the price of stainless steel is difficult to rebound due to the shortage of resources and the rise of nickel prices. In June, it will preserve the situation of sideways consolidation. With the further introduction of national easing policies and the acceleration of approval of large-scale projects, the situation after the third quarter is relatively Optimism, but the specific rebound rate is still determined by demand.