At present, raw material costs remain relatively stable, and Chinese steel mills are seeing increased production margins and maintaining high capacity utilization. Meanwhile, suppliers are exercising control over shipment volumes, leading to a continued drawdown of market inventories.
Last week, stainless steel futures prices saw a strong rally, breaking out of the previous range-bound trading pattern. This was accompanied by a recovery in trading volume, signaling a gradual warming of the market.
In the spot market, reports suggesting a potential tightening of Indonesia’s export quotas for 2027, coupled with expectations of reduced ferronickel production, have fueled a rise in both nickel and stainless steel futures prices. Additionally, demand from end-buyers has shown some recovery. However, high prices continue to dampen the willingness of downstream players to restock, with procurement remaining largely driven by immediate, practical needs.
From a macroeconomic perspective, the global trade environment remains volatile, characterized by significant uncertainty, and the traditional peak season has underperformed relative to expectations. In China, the implementation of fiscal stimulus policies has been slow, providing only limited impetus to the real economy.