The profit margin of the stainless steel coil 316L is close to the cost line. There is a strong willingness to increase the price, but the sales pressure is significant.
Regarding iron ore, the prices of imported ores have slightly eased this week. Predictions for next week: The shipment volume will fluctuate at a high level, the incoming volume is expected to decline, the iron water production is still likely to increase slightly, the port inventory is likely to continue to increase, and the iron ore prices are expected to show a slightly weak and fluctuating trend.
It is understood that downstream rolled steel enterprises have experienced difficulties in selling their finished products, resulting in a weakened demand for steel billets. The withdrawal from the warehouses has basically come to a standstill; some ports even have cargo congestion, and the pressure in the circulation is considerable. Looking ahead to next week， the profits of downstream stainless steel coil 316L factories continue to narrow， and the willingness to start production has declined. The purchase of steel billets will mainly be based on demand， and it is difficult to support the price； although some stainless steel coil 316L factories have reduced external sales， the overall resource supply remains relatively loose， and the pressure of inventory accumulation does not decrease. The increase in coke prices at the cost end provides a certain bottom support for steel billets. Therefore， it is expected that the price of steel billets may weaken and decline next week， but the decline will be limited.
From the perspective of supply and demand, the inventory of stainless steel coils 316L in Shanghai and other regions continues to decline, but new resources will be replenished later. The demand has slowed down due to the rainy season and high temperatures, which have affected outdoor construction. It is expected that the price of 316L stainless steel coils will continue to fluctuate and remain weak next week. The funds for infrastructure and real estate are under pressure, and there are few orders in the machinery manufacturing sector. The southern rainfall further suppresses construction, and the seasonal effect is obvious. The long-process steel mills prioritize high-value-added orders, and the supply of flat steel plates is reduced. The market supply of 316L stainless steel coils is tight, and the social inventory has slightly decreased but the consumption volume has decreased month-on-month. Next week, 316L stainless steel coils are likely to maintain a weak narrow-range fluctuation and there will be no single-directional trend.
Overall, the supply of stainless steel coil 316L has slightly increased, while the factory inventory has risen slightly but the social inventory has decreased; traders have reduced their shipments to promote sales, resulting in sluggish market trading. In May, steel exports increased by nearly 9% compared to the previous month, but the anti-dumping tax policy brings uncertainty. It is expected that the price of stainless steel coil 316L will remain slightly weak in the coming week. The price of cold-rolled base material as a raw material remains stable, and cost support still exists, but the total inventory is declining slowly, and the weak sales in the off-season have led to a small decline in price next week. In terms of galvanized products, supply has contracted, weekly production has decreased, and although the social inventory has dropped, it is still higher than that of the same period last year; the retail sales of passenger cars have significantly declined year-on-year, and the purchasing pace at the terminal has slowed down. In the short term, the price of stainless steel coil 316L remains stable but lacks upward support.
