Close this search box.


China stainless steel factory

Starting from a historical low valuation, can stainless steel rebound in April?

The main 2405 contract of stainless steel traded narrowly yesterday, with the market waiting for news from downstream. The trading volume yesterday was 185,713 lots, a significant decrease compared to the bottom rebound data on Monday. Some investors have started to try to lay out medium and long-term long positions at low levels. The Shanghai nickel price is also continuously falling, as expectations of alleviating the structural shortage of domestic new energy nickel continue to decline. The main stainless steel is currently in a oscillating adjustment, and it is expected to have limited rebound during the day, with the medium-term expected to start a rebound trend, with short positions dominating long positions.

On the 2nd, 304 cold-rolled flat plates in Wuxi were reported at 13,800-15,500 yuan/ton, an increase of 20 yuan/ton compared to the previous working day; 304 hot-rolled flat plates in Wuxi were reported at 13,200-15,200 yuan/ton, unchanged from the previous working day. On the news front, Cleveland Fed President Mester said on Tuesday that if the data supports it, the June policy meeting may be the time to start easing policy. “If the economy develops as expected, inflation continues to fall towards 2%, the labor market and economic growth remain robust, then I think it is appropriate to start lowering the federal funds rate later this year.” On the demand side, on March 29th, the China Iron and Steel Industry Association organized a rebar market seminar. Luo Tiejun, vice chairman of the Iron and Steel Association, emphasized that the consensus is that the demand trend for construction steel is declining, and this year’s start of demand in the construction market is significantly lagging behind. With the implementation of national policies in place, it is expected to see a bottoming out and rebound in demand, and everyone should closely monitor market changes. According to the principle of “three determinations and three don’ts,” adjust the production pace according to market demand and do not significantly increase production when market demand improves. The downstream market is expected to usher in a period of demand rebound, waiting for the rebound opportunity.

In terms of futures, the stainless steel 2405 contract broke through the strong support of the previous 13200 level on Monday, hitting a new low in recent months, and after a volume decline, it quickly pulled up strongly. Currently, the stainless steel price is approaching the cost, although the market is weak, the subsequent deep decline space is limited, coupled with the expectation of downstream steel mills rebounding in April, downstream markets have started to quote transactions. Consider laying out short and long positions for arbitrage. In the short term, the 13500 mark is still dominated by rebounding short positions. After breaking through the support level, treat it as a shake and layout the long positions of the 2409 contract in the distant months, with a try range near the previous low of 13280-300.

In terms of spot, pay attention to the replenishment support brought by the control of downstream shipments by companies led by Qingshan, and also pay attention to the rebound of downstream steel mill demand in mid-April. It is expected to usher in a phase of price rebound at the end of the golden three and the silver four.

New Center

More Posts

Aluminum Prices Surge to Nearly Two-Year High as Supply Concerns Intensify

Recently, aluminum prices have surged in the global market, reaching a near two-year high. This increase is primarily driven by supply concerns. Global mining giant Rio Tinto has announced a force majeure event on third-party contracts at its alumina refinery in Queensland, Australia, further pushing aluminum prices up. It is understood that Rio Tinto’s alumina

China’s Macro-Economic Optimism Keeps Aluminum Prices in High Volatility

The rise in oil prices and the fall of the US dollar index boosted market bullish confidence, resulting in LME aluminum closing up by 1.28% over the week. Frequent macroeconomic benefits in China supported strong gains in Shanghai aluminum, with aluminum ingot inventories remaining low. Today’s spot aluminum prices are expected to rise. The rise

What are the key technological research and innovations?

The New Science and Technology Progress column of the official website of the China Metal Society published the article “Research and Innovation on Key Technologies of High-Efficiency Low-Carbon High-Air Temperature Hot-blast Stoves” written by Shougang Group Co., Ltd., which introduced the relevant situation of this technology in detail and attracted the attention of the industry.

Nickel prices will continue to fluctuate strongly in May

In April, supported by the resonant rise in non-ferrous metal prices and its own fundamentals, nickel prices rose significantly, with a monthly increase of more than 9%. As the non-ferrous metal sector consolidates, the main contradiction between nickel supply and demand is expected to switch, and nickel prices are expected to continue a strong and

Send Us A Message


Let's have a chat