On September 19, stainless steel experienced slight fluctuations overall.

[SMM Hotspot: Lechong Hot Rolled Coil Drops Below 3000, Will the Market Continue to Decline?] Amid the backdrop of poor macroeconomic data both domestically and internationally, the black futures market, after a two-week rally, has resumed its downward trend and broken through previous lows once again. Similarly, the spot prices are not optimistic. In the case of the Lechong market, the spot price of Lechong hot rolled coils broke through the 3000 yuan/ton threshold on the 6th, reaching a five-year low, with a year-to-date decline of 29.22%! So, what is the supply and demand structure of Lechong hot rolled coils? And what about the subsequent price trend? ...

【SMM Steel Morning Meeting Summary: Inventory Reduction Falls Short of Expectations, Hot Rolled Coil Prices May Fluctuate Weakly】In the spot market, futures continued to plunge sharply, the trading atmosphere was bleak, downstream buyers stayed away, and hot rolled coil transactions were poor. This week, according to SMM statistics, the social inventory of hot rolled coils in 86 warehouses (large sample) nationwide was 4.8965 million tons, up 71,800 tons or 1.49% from the previous week, and up 18.65% year-on-year. Regionally, except for inventory reductions in the Northeast and North China markets, the East China, Central China, and South China markets are still experiencing inventory accumulation, with the rate of accumulation expanding. In terms of costs, raw material prices are facing difficulties in both rising and falling, and the cost support for hot rolled coils remains stable for the time being. In summary, the inventory reduction of hot rolled coils falls short of expectations...

On August 29, the difference between the main contract coil and rebar was 52 yuan/ton, down 5 yuan/ton from the previous month; the difference between the hot rolled coils of Zhangjiagang Shagang and the rebar coils of Hangzhou Zhongtian was -30 yuan/ton, which was temporarily stable from the previous month...

[SMM Hot Topic: Reversal of Rebar and Hot Rolled Coil Profit Margins! Rumor Has It That Steel Mills Will Switch Production Lines in September?] Since the end of the second quarter, steel prices have fallen sharply, leading to a rapid narrowing of steel mill profits during this period. Subsequently, the intensification of the fundamental contradiction between high supply and high inventory has shifted market attention gradually to hot rolled coils. As steel prices continued to decline, the decline in hot rolled coil prices was significantly more pronounced than that of rebar. Ultimately, the profit margins of rebar gradually recovered, while those of hot rolled coils continued to deteriorate. As of August 19, although rebar incurred a loss of 142.51 yuan/ton, the loss for hot rolled coils has reached as high as 186.92 yuan/ton, marking a new low for hot rolled coil profit margins this year...

[SMM Daily Commentary on Hot Rolled Coils: Rebound or Reversal? Decent Trading Volume Today] The hot rolled coil futures market experienced a volatile uptrend today, closing at 3217 in the afternoon, with a gain of 1.97%. The rebound in the futures market has bolstered market confidence, leading to an improvement in intraday trading volumes of hot rolled coils in mainstream markets. According to SMM's weekly maintenance data, the impact of maintenance on hot rolled coil production this week has decreased compared to last week. Amidst ongoing production cuts, the current inventory pressure on hot rolled coils remains. However, the recent slight improvement in spot liquidity of hot rolled coils may contribute to a shift towards inventory reduction. Additionally, the rapid narrowing of the spread between coil and rebar prices has intensified losses for some steel mills producing hot rolled coils, prompting rumors of production line adjustments from hot rolled coils to rebar. Continued monitoring of SMM's research on steel mill production cuts is advised. If the subsequent effects of production cuts gradually become apparent, hot rolled coils may see an inventory inflection point, with price movements also strengthening. In summary, it is expected that hot rolled coil prices will continue to oscillate within a range in the short term, with limited upside momentum.