Stimulated by expectations of a nickel ore shortage, the Chinese stainless steel market saw initial volatility in night trading on April 23, with futures prices surging to as high as CNY 15,230 per ton.
Some leading domestic stainless steel manufacturers subsequently suspended sales, prompting frequent price increases from agents and traders in South China. During this price surge, traders frequently adjusted prices, significantly improving market activity.
This stainless steel price increase stemmed not only from strong cost support due to limited nickel ore quotas but also from domestic producers using price increases to alleviate losses and stimulate downstream demand.
In the short term, the tightening of nickel ore quotas and expectations of production shutdowns are expected to continue to unfold, maintaining strong support from the raw material side.