With the fading of the summer slump, the market for 316L stainless steel coils is gradually recovering.
Today, the overall market of 316L Stainless Steel Coil witnessed a decline. There was a narrow range decline for various spot varieties, and the futures steel also fell simultaneously, eventually reaching a weekly new low. The overall transaction volume of 316L Stainless Steel Coil was average, and the sales were not smooth.
As the end of the month approached, the 316L Stainless Steel Coil market was still shrouded in a pessimistic atmosphere. All steel subcategories generally weakened in July, although the decline was not significant, but the depressed state did not improve, continuously suppressing the market sentiment, and the overall market was dominated by buyers. However, the decline of some varieties was still less than that in June, such as the general 316L Stainless Steel Coil, whose decline narrowed in July, but the south and north markets showed a divergence, with a significant southward correction. And some varieties had consistently poor performance, such as the steel wire rope price in North China continuously falling to the beginning of the year's low level, with demand decreasing by one-third year-on-year, reaching the worst level in recent years. Factories adopted the night off-peak electricity production mode to control costs and reduce inventory, and the order acceptance was weak. While the 316L Stainless Steel Coil market in the north was under significant pressure, the cost support for pipe prices was ineffective， and the profit of 316L Stainless Steel Coil factories contracted. Downstream enterprises adhered to a hedging mentality， fully implementing a follow-up and use strategy， with raw material inventories running at a low level， but finished product inventories continued to accumulate， leading to a shift from weak supply and demand to a situation of supply exceeding demand. In the east and other regions， 316L Stainless Steel Coil also showed weakness synchronously， with social inventories continuously increasing. Traders focused on maintaining cash flow and light asset operation.
In the short term， the prices of crude oil and other petrochemicals dropped significantly， and the entire industrial products weakened temporarily， which also had an adverse impact on black commodities. The coking coal led the decline in the black series in the past two days， also bringing certain pressure to 316L Stainless Steel Coil. Moreover， market expectations for policies were not strong. The impact of the production restriction in Tangshan was limited， and some institutions predicted that the national pig iron output might still increase in the next 1-2 weeks. In a situation where it is difficult to achieve a rebound with external forces， if the supply reduction is not as expected， the factory and social inventory needs more time to be digested， which greatly reduces the rebound expectation. Unless there is a more powerful macro policy or the fading of the summer season factors in August， the 316L Stainless Steel Coil market can gradually improve.
