SMM data shows that overseas stainless steel prices saw their first correction after six months of gains during May 18–22. Indonesia’s leading mills cut FOB 300 series stainless steel by USD30/mt, then kept prices stable through out the week. Policy-driven supply concerns from Indonesia and IWIP NPI cuts pushed LME nickel above USD 18,800/mt. The market focus shifted from price weakness to cost support, while demand remained resistant to high prices.

[SMM Stainless Steel Daily Review] SS Futures Fluctuated Downward, Stainless Steel Spot Prices Held Steady SMM, May 22: SS futures were in the doldrums. The new US Fed chairman officially took office today, and combined with the continued release of hawkish remarks from the US Fed recently, non-ferrous metal futures weakened overall today. SS also pulled back slightly following the trend. As of the close, the most-traded SS contract was quoted at 14,745 yuan/mt. On the spot market side, although SS futures were weak, the overall decline was limited. Spot prices mostly remained stable, with end-users mainly making just-in-time procurement, and intraday transactions were steady. The most-traded SS futures contract pulled back. At 10:15 AM, SS2605 was quoted at 14,800 yuan/mt, down 30 yuan/mt from the previous trading day. Spot premiums for 304/2B in the Wuxi area were in the range of 370-770 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi held steady; for cold-rolled trimmed-edge 304/2B coils, Wuxi held steady, and the average price in Foshan held steady; cold-rolled 316L/2B coils in Wuxi held steady; hot-rolled 316L/NO.1 coils were quoted steady in Wuxi; cold-rolled 430/2B coils in both Wuxi and Foshan held steady. This week, the stainless steel market saw both futures and spot prices fluctuate steadily. Futures movements were mainly driven by industry news expectations, with limited overall fluctuations. Market sentiment was divided—traders held a weak sentiment, but end-user just-in-time procurement remained resilient. Combined with active shipments from traders, market supply continued to be depleted, presenting an overall pattern of news providing a floor, rigid demand offering support, and fundamentals under pressure. On the futures side, this week SS...

[SMM Stainless Steel Scrap Market Weekly Review] Weak Futures Dragged Down Stainless Steel Scrap, Cost Advantages Underpinned the Market This week, prices of 304 stainless steel scrap off-cuts in east China pulled back, with the quotation range at 10,600-10,700 yuan/mt; prices of the same-spec stainless steel scrap off-cuts in Foshan held steady, with the price range at 10,400-10,700 yuan/mt. From a raw material production cost perspective, the cost of producing stainless steel entirely from stainless steel scrap was approximately 14,821.71 yuan/mt, while the cost of production entirely using high-grade NPI reached 15,173.94 yuan/mt. Stainless steel scrap prices declined and pulled back this week. SS futures were generally in the doldrums, with futures continuously under pressure, which in turn transmitted to the spot market, driving spot stainless steel finished product prices to pull back in tandem. The alternative raw material high-grade NPI also declined simultaneously, but its own raw material fundamentals remained relatively firm, limiting the price drop. As stainless steel spot prices trended downward, steel mills still retained certain smelting profits, production willingness stayed high, and steel mill production schedules showed no reduction. Meanwhile, with the limited decline in high-grade NPI, the cost advantages of stainless steel scrap relative to high-grade NPI became more prominent during the week. Even though industry tax invoice issues persisted, they did not affect steel mills' procurement pace, and procurement demand for stainless steel scrap with better cost advantages remained solid. Overall, the stainless steel scrap market this week exhibited a pullback pattern characterized by "weak futures, resilient raw materials, and demand underpinning." Bearish futures dominated the short-term trend, but rigid demand and cost price spread advantages formed strong support. Tax invoices...

[SMM Stainless Steel Daily Review] Macro Disturbances Dragged SS Futures Lower; Low Inventory Pressure and Rigid Demand Supported Stainless Steel Spot Prices SMM, May 15 — SS futures continued to be in the doldrums. Non-ferrous metal futures extended the previous day's decline, and SS also fluctuated downward in tandem. As of the morning close, the most-traded SS contract was quoted at 14,825 yuan/mt. Spot market side, dragged by the persistently weak SS futures, stainless steel spot prices pulled back in tandem. However, stainless steel social inventory has been on an overall downward trend recently, and traders faced relatively small shipment pressure. Market confidence remained stable, and price declines were relatively limited. The most-traded SS contract fell and pulled back. At 10:15 AM, SS2605 was quoted at 14,890 yuan/mt, down 60 yuan/mt from the previous trading day. Spot premiums for 304/2B in the Wuxi area were in the range of 380-680 yuan/mt. In the spot market, the average price of cold-rolled 201/2B coils in Wuxi remained flat; for cold-rolled untrimmed 304/2B coils, the average price in Wuxi fell 100 yuan/mt, and the average price in Foshan fell 100 yuan/mt; cold-rolled 316L/2B coils in the Wuxi area held steady; hot-rolled 316L/NO.1 coils were quoted stable in Wuxi; cold-rolled 430/2B coils in both Wuxi and Foshan held steady. The stainless steel market was dragged by the weak and volatile futures, with notable downward pressure, but overall spot price declines remained limited, highlighting the divergence between futures and spot. Downstream end-users adopted a cautious wait-and-see stance due to macro uncertainties, with no concentrated restocking observed. However, rigid demand purchases remained solid, and the resilience of rigid demand provided a foundation for spot prices...

[SMM Analysis: Futures in the Doldrums with Rigid Demand Providing Support, Stainless Steel Social Inventory Saw Mild Destocking] On May 14, SMM reported that stainless steel social inventory continued its mild destocking trend this week. Total inventory across the two core markets of Wuxi and Foshan pulled back slightly, dropping from 955,200 mt on May 7, 2026 to 947,100 mt on May 14, down 0.85% WoW, showing mild destocking characteristics. SS futures were in the doldrums this week. On Thursday, SS futures dropped sharply due to uncertainties surrounding the Fed Chairman transition policy, putting macro sentiment under pressure. However, the spot market showed strong resilience against declines, with stainless steel spot prices falling only narrowly and not following futures to swing wildly. Supply side, steel mills' earlier cargo distribution pace was relatively low, limiting market arrival pressure; traders were cautious in purchasing high-priced cargoes, and speculative purchasing willingness in the market remained weak. Demand side, rigid demand transactions in the market were moderate this week, with end-user rigid demand maintaining a steady pace to pick up goods, largely unaffected by the weak futures performance. Rigid demand resilience supported continued destocking, jointly driving social inventory to pull back slightly this week. Overall, despite futures being under pressure and ongoing macro uncertainties this week, firm spot prices, low steel mill arrivals, and resilient downstream rigid demand collectively drove mild inventory destocking. Currently, the high production schedule pattern at steel mills has not changed, supply-side pressure persists, and futures may maintain wild swings amid the uncertain macro environment. Combined with the traditional peak consumption season gradually...

This week, stainless steel spot prices and production costs strengthened in tandem, with stainless steel mill smelting profits narrowing slightly. Taking 304 cold-rolled products as an example, based on current raw material prices, the full cost profit margin was 2.9% this week; calculated using inventory raw material costs, the profit margin reached 6.03%. Cost side for nickel-based raw materials, high-grade NPI prices continued to rise sharply this week. Driven by the strengthening of SS contracts, high-grade NPI prices surged after the Labour Day holiday. Although futures subsequently pulled back, strong price-holding willingness persisted in the market, supported by high stainless steel production schedules, robust demand, and NPI's own cost support, keeping prices firm. As of this Friday, mainstream high-grade NPI with 10-12% grade rose 16 yuan per nickel unit to close at 1,151 yuan/nickel unit. Stainless steel scrap market, stainless steel scrap prices continued to hold up well this week. Post-holiday geopolitical news drove futures to retreat after rapid rise, but stainless steel spot cargo performed firmly, coupled with high-grade NPI rising in tandem, providing strong cost support. The core driver was that steel mill profits remained moderate with high production schedules, sustaining rigid raw material demand; moreover, steel scrap still held significant cost advantages over NPI, boosting purchase willingness. Although tight tax invoices constrained trader cash flow, bullish sentiment was strong in the market, and scrap prices are expected to hold up well in the near term. As of this Friday, mainstream 304 off-cuts prices in Shanghai rose 250 yuan/mt, with the latest quote at approximately 10,850 yuan/mt. Cost side for chromium-based raw materials, high-carbon ferrochrome prices pulled back slightly overall this week. Although major stainless steel mills raised their steel tender prices for high-carbon ferrochrome in May, ferrochrome planned production remained at high levels. Additionally, south China was gradually entering the normal/rainy season, and ex-China ferrochrome producers were about to resume production, leading to relatively loose ferrochrome supply expectations. Recent ferrochrome transactions were sluggish, and chrome ore inventory reached a multi-year high, with chrome ore prices softening and ferrochrome cost support weakening, leaving prices in the doldrums. As of this Friday, mainstream high-carbon ferrochrome prices in Inner Mongolia fell 25 yuan/mt (50% metal content) WoW to close at 8,450 yuan/mt (50% metal content).