Stainless Steel Raw Material Keep Increasing in Price

Stainless Steel Raw Material Keep Increasing in Price

Stainless steel increase in price

Early this morning, 304 cold-rolled stainless steel of Wuxi Delong brand took the lead of increase in price by 500 RMB per ton; 304 hot-rolled stainless steel of Zhangpu brand also rose by 500 RMB per ton. 304  Wuxi guide price rose by 300 RMB/ton; 316L and 321 cold-rolled and hot-rolled stainless steel rose by 300RMB per ton; Dongte brand hot-rolled stainless steel rose by 450 RMB per ton. Qingshan extruded profile stainless steel have a direct increase of 600-800 RMB per ton. 

Market price increases are chaotic, there have been a trend of inventory shortages

On the one hand, there have been a trend on limiting production, electricity consumption, and carbon emissions.

In the first ten days of July, the peak production value of last summer has been exceeded, and supply and demand in some areas have been tight during peak hours. It reached 27.187 billion kilowatt-hours, an increase of more than 10% from the highest production value last summer. Many places across the country have adopted time-sharing electricity saving measures, giving priority to residents.

With regard to steel and stainless steel production capacity, the government has strictly ordered that the overall production capacity this year cannot exceed that of last year, but due to the overspending in the first half of the year, the prospect of production capacity reduction in the second half of the year is huge. Also due to the staple commodity price regulations, as well as limiting carbon emission initiatives ,there has been a major trend of implementation energy saving, emission reduction, production capacity reduction measures on steel plants.

On the other hand, the market has seen a trend of inventory shortages and many products being out of stock.

At present, there are still not many stainless steel in stock, and any low-priced goods are quickly swept away from the market.

There are also factories who are reluctant to sell because their own inventory is insufficient.

Also the chrome ore production costs has continued to increase.

In the context of Indonesia's mining ban, the shortage of nickel ore cannot be improved. The current supply of ferrochromium is very low, and the price increase is evident. It remains to be seen whether these trends will affect the output of stainless steel.

Chaozhou Xiangfa recommendations to the clients

Given recent trends of raw material price increases we recommend our clients to place an order as soon as possible. The increasing price trend will remain in a foreseeable future that’s why it wouldn’t be rational to wait any longer. We welcome our clients to send any inquiries about our products and recent quotations to our official email. We hope to work with you in the nearest future.