Fu chuan Metals predicts that the price of stainless steel coils 316L will continue to fluctuate and weaken in the coming week.
Supply side: The stainless steel coil 316L factory maintains normal production, the blast furnace operation rate is at a high level, and there are no maintenance plans for local and surrounding stainless steel coil 316L factories. The daily arrival volume at the Hangzhou warehouse is stable, resources of various specifications are well-stocked, there are no particularly scarce varieties, and the supply of stainless steel coil 316L in the market remains loose.
Demand side: This week, the demand side of 316L stainless steel coils has significantly weakened, mainly reflected in three aspects: First, the Dragon Boat Festival holiday is approaching, most merchants have completed pre-holiday replenishment, and new purchase demand has decreased; second, Hangzhou has entered the rainy season, continuous rainfall has led to an increase in the number of construction projects being halted outdoors, and the construction progress has been hindered; third, there are few new construction projects in the real estate sector, and the procurement pace of infrastructure has slowed down, and the overall demand for end-use steel has contracted. Under the situation of stable supply and weak demand for 316L stainless steel coils, the contradiction between supply and demand continues to accumulate.
Next week outlook: Cost support but demand suppression, the price of 316L stainless steel coils continues to fluctuate and weaken.
Overall, this week the 316L stainless steel coil market shows a "first stable then falling" operating rhythm. The core contradiction lies in the mutual pulling between the cost side and the demand side:
Positive factors: The increase in coke prices has provided certain support for the cost side, limiting the deep decline of the price of stainless steel coil 316L; inventory has been continuously reduced for two weeks, and the fundamentals have marginally improved.
Negative factors: The absolute level of inventory is relatively high, and the pressure of inventory reduction is still large; the suppression of terminal demand by the rainy season continues, coupled with holiday factors, the short-term transaction volume of 316L stainless steel coils is unlikely to have a significant increase; the expansion of futures discount further suppresses the sentiment of the spot market, and the confidence of merchants in maintaining prices is insufficient.
Under the multiple suppressions of stable supply, weak demand, high inventory, and the expansion of futures discount, Fuchuan Metal predicts that the price of stainless steel coil 316L will continue to fluctuate and weaken in the next week.
