However, this downward trend has affected not only futures trading but also the spot market. Weak demand has exerted pressure on spot prices.
When examining prices in Wuxi, a significant stainless steel trading center, it's observed that the spot price of 304/2B 2mm cold-rolled stainless steel coil, including 13% VAT, dropped to 14,600 Yuan/ton (2,028 $/ton). Similarly, a decline in the spot price of 304/No.1 5mm hot-rolled stainless steel coil in Wuxi was recorded at $1868/ton.
Market observers note that following the downward trend in futures trading, many stainless steel traders have lowered their offer prices. This trend is confirmed by the decrease in the price of the most traded May delivery stainless steel contract on the Shanghai Futures Exchange.
However, despite the price reductions, stainless steel purchases haven't increased, and overall trade remains weak. It is expected that the downward trend in prices will continue due to slow recovery in stainless steel demand and increasing production from manufacturers.
A significant increase in production is anticipated from the 43 stainless steel producers in China for the upcoming month.
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