The short-term market for 316L stainless steel coils will remain in a state of indecision between rise and fall.
The market performance of 316L Stainless Steel Coil today was average. The quotations remained relatively stable, but the sales were weak. Merchants reported that after the price increase yesterday, the transactions were somewhat overextended, and today the market situation for 316L Stainless Steel Coil was average, with relatively calm trading.
Yesterday's upward trend has basically returned to stability today. The influence of funds and emotions has subsided, and the 316L Stainless Steel Coil market has returned to its fundamental level. The market is lackluster, with some regions showing no market activity, and the trading process is extremely weak, testing the tolerance of the steel trading industry.
According to data from the National Bureau of Statistics, in June, the year-on-year increase in domestic CPI was 1.0%, which was lower than market expectations and also alleviated concerns about inflation. However, from the perspective of PPI, it rose by 4.1% year-on-year, with the growth rate expanding for four consecutive months and reaching a new high since July 2022. The upward trend in the industrial sector continued to intensify, and the gap between CPI and PPI continued to widen, precisely reflecting the pressure situation in the 316L Stainless Steel Coil market at present. Last month, the easing of the situation in Iran led to a decline in the cost of bulk commodities, but the AI investment boom, the rebound in oil prices and coke, and the prices of non-ferrous metals pushed up the cost of industrial raw materials, directly increasing the production-side cost pressure of 316L Stainless Steel Coil.
Furthermore, it can be observed that the current situation is characterized by high costs and weak demand. The continuous rise in PPI has led to a rigid increase in production costs in the industrial sector. The low CPI reflects the lack of recovery in terminal consumption and downstream demand. The demand for steel in real estate, infrastructure, and manufacturing has weakened during the off-season, and the market demand for 316L Stainless Steel Coil has been insufficient to absorb it. This has made it difficult for steel mills to pass on the rising raw material costs to the downstream. As a result, industry profits have been continuously compressed. Coupled with the pressure of inventory accumulation during the off-season, the rebound momentum of 316L Stainless Steel Coil prices is insufficient, and the overall market continues to operate in a weak manner.
At present, the short-term market for 316L Stainless Steel Coils remains in a state of indecision between rise and fall. There is no clear upward trend in the market, and the subsequent trend heavily depends on the recovery strength of terminal demand. As July approaches, expectations for the policy outlook for the second half of the year in the 316L Stainless Steel Coils market are also increasing. However, due to the frequent occurrence of various natural disasters, the recovery of demand in the off-season is slow, and the recovery cycle has been prolonged. Market movements driven by external forces or market sentiment cannot last long. Ultimately, it is still necessary to wait for the gradual resolution of the supply-demand contradiction.
