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Weekly Average Price|| Increasing Price, One and Only 304.-- Stainless steel Market Summary in China(27th, July – 31st, July)

304/2B:The average price of 2.0*1219*C (slit edge) of ZPSS in the Wuxi market is US$1,940/MT(plus taxes) which drops by US$4/MT compared to last week and the declining percentage is 0.21%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,980/MT(plus taxes) which is also US$4/MT less than last week and the decreasing percentage is 0.21%.

304/2B:The average price of 2.0*1219*C (slit edge) of Hongwang in the Wuxi market is US$1,890/MT(plus taxes) which is US$22/MT higher than last week and the rising percentage is 1.10%. Besides, the average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,865/MT(plus taxes) which is US$23/MT higher than last week and the increasing percentage is 1.19%.

304/No.1: The average price of 4.0*1520*C (mill edge) of ESS in the Wuxi market is US$1,820/MT(plus taxes) which increased by US$29/MT compared with last week and the rising percentage is 1.53%. Furthermore, the average price of 4.0*1520*C(mill edge) in the Foshan market is US$1,840/MT(plus taxes) which is US$35/MT higher than last week and the increasing percentage is 1.82%.

316L/2B: This week, the average price of 2.0*1219*C of TISCO in the Wuxi market is US$2,675/MT(plus taxes) which increases by US$6/MT compared with last week and the increasing percentage is 0.38%. Moreover, the average price of 2.0*1219*C(slit edge) of TISCO in the Foshan market is US$2,725/MT(plus taxes) which increases by $6/MT compared with last week and the rising percentage is 0.20%.

316L/No.1: This week, the average price of 4.0*1500*C(mill edge) of ESS in the Wuxi market is US$2,480/MT(plus taxes) which is US$29/MT higher than last week and the increasing percentage is 1.10%. What's more, the average price of 4.0*1500*C(mill edge) in the Foshan market is US$2,505/MT(plus taxes) which is US$32/MT less than last week and the rising percentage is 1.20%.

201/2B: This week, the average price of 1.0*1219*C(mill edge) of Hongwang in the Wuxi market is US$1,050/MT(plus taxes) which remains as last week. Besides, the tax-inclusive average price of the Foshan market is US$1,055/MT(mill edge) which increases by US$4/MT compared to last week and the increasing percentage is 0.55%.

J2, J5/2B: The average price of 1.0*1219*C(mill edge) of the Wuxi market is US$1,000/MT(plus taxes) which is US$4/MT less than last week and the declining percentage is 0.43%. Besides, the tax-inclusive average price of the Foshan market is US$1,015/MT(mill edge) which increases by US$7/MT compared with last week and the increasing percentage is 0.72%.

430/2B: The average price of 2.0*1219*C(slit edge) of TISCO in the Wuxi market is US$1,060/MT(plus tax), and the average price of 2.0*1219*C(slit edge) in the Foshan market is US$1,050/MT(plus taxes). Both remain as last week.


DATA|| The Apparent Consumption of Stainless Steel Increases by 0.8% in the First Half of 2020. It is an outstanding performance in the second quarter.  

In the first half of 2020, the breakout of the COVID-19 pandemic has cast a huge shadow over the world. The stainless steel has stopped sales for a month, which is a predicament that the stainless steel industry never faces. 

Fortunately, the epidemic in China has gotten better. In April, the stainless steel price was boosted because of the limited inventory and stockout, stimulating the demand for purchase and restock. After a round of price increase, the transaction turned out good. However, with the epidemic spread to the world, many ports were locked down, transportation was blocked. Therefore, the international demand was slack and since April, the export volume has been decreasing.


Apparent consumption increases by 0.8% in the first half of 2020

From January to June, China’s apparent consumption was 12,450 thousand tons, which increases by 104,6 thousand tons compared with the same period of last year and the rising percentage is 0.8%.

 China’s Stainless Steel Apparent Consumption trend from 2014 to 2020 



Consumption increases by month after the Spring Festival.    

After the Spring Festival, China’s apparent consumption climbed up month by month. The increasing percentage of March, April, and May all surpass 10%, of which April increased the largest.
The increase in March is because of the deferred demand from February. In April, with the price boosted by the mills, many traders and buyers began to restock, leading to the futures of mills are arranged to June. According to the traders, sales were better during May and June, but the sales growth was reduced.
 
China’s Stainless Steel Apparent Consumption (Unit: thousand tons)


 

Inventory keeps increasing, but the percentage reduces.

In later June, the total inventory of the Wuxi and Foshan market is about 812.9 thousand tons, which increases by 261 thousand tons compared to the same period of last year and the rising percentage is 47.4%.

The social inventory in 2020 increases obviously. One reason is that stainless steel consumption increased. It also reflects that The contradiction between supply and demand worsens than in previous years, but the increasing percentage reduced.
 
Stainless Steel Inventory Trend in Wuxi and Foshan Market form 2014 to 2020


 

The monthly inventory keeps dropping.

From the perspective of monthly inventory in 2020, it started to drop after March. We summarize four reasons as follow:

1.    Demand increased.
2.    Mills have changed the selling mode to futures sales. The percentage of selling stocks reduced.
3.    Mills have increased the investment in the downstream buyers, which reduces the circulation ability of the traders.
4.    Some mills have started the plate production, which controls the plates circulating in the market and promotes their products.   

 
Stainless Steel Inventory in Wuxi and Foshan Market (Unit: thousand tons)



Inventory Fluctuation Quantity in Wuxi and Foshan Market (Unit: thousand tons)
↑↑↑

The monthly decline in inventory also reflects the continued good consumption of stainless steel. In July, the total price ascends, which stimulates buyers' buying demand. For now, there is no obvious sign of a rebound in exports. If the production is kept in the rising trend, domestic consumption in July will increase.
 
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