As of November 21, the main stainless steel closed up 1.06% to 16,680 yuan/ton. The supply side’s new production capacity is climbing, the output is increasing, and the supply pressure is relatively large. The demand side remains tepid. In terms of inventory, the total social inventory of stainless steel in each series in the domestic market has increased, and there is pressure on inventory release. As of November 21, the main stainless steel closed up 1.06% to 16,680 yuan/ton. The supply side’s new production capacity is climbing, the output is increasing, and the supply pressure is relatively large. The demand side remains tepid. In terms of inventory, the total social inventory of stainless steel in each series in the domestic market has increased, and there is pressure on inventory release. As of November 21, the main stainless steel closed up 1.06% to 16,680 yuan/ton. The supply side’s new production capacity is climbing, the output is increasing, and the supply pressure is relatively large. The demand side remains tepid. In terms of inventory, the total social inventory of stainless steel in each series in the domestic market has increased, and there is pressure on inventory release. As of November 21, the main stainless steel closed up 1.06% to 16,680 yuan/ton. The supply side’s new production capacity is climbing, the output is increasing, and the supply pressure is relatively large. The demand side remains tepid. In terms of inventory, the total social inventory of stainless steel in each series in the domestic market has increased, and there is pressure on inventory release.

1. The downstream demand is not good, and the price of stainless steel has dropped significantly

Affected by the domestic epidemic and the economic situation, the downstream consumption of the stainless steel industry is relatively cold. Among the current mainstream stainless steel consumption industries, only the stainless steel consumption in the construction machinery manufacturing industry has increased, and the growth is relatively slow. The competition in the home appliance manufacturing industry has intensified, and the superimposed macro economy is not optimistic, and the entire home appliance manufacturing industry is generally under pressure. The real estate industry has been stagnant. With the recent good news, there are still no specific measures, and the overall market confidence is weak. It is expected that the prospect of stainless steel consumption will not be optimistic during the year.

2. Although the price of raw materials has loosened, the short-term decline is limited

In terms of raw materials, the ferrochromium market still maintains a weak and stable operation. Due to the sluggish demand for chrome ore, the price showed a downward trend, resulting in a reduction in the production cost of ferrochrome, an increase in the profit of the iron factory, and a weakening of the willingness to support the price. At present, the operating rate of domestic iron plants has generally increased, but due to the impact of the epidemic in Inner Mongolia, some ferrochrome production has been hindered, and the recovery of production may not be as expected. It is expected that the short-term ferrochrome price will still be dominated by weak and stable operations.