SMM

On November 27, futures prices plummeted, breaking below 13,000 yuan/mt, leading to pessimistic market sentiment. Some traders proactively reduced prices to sell off due to panic. Recently, stainless steel mills have been aggressively lowering raw material prices and have significantly reduced prices multiple times. On one hand, raw material prices have continuously fallen below expectations, completely invalidating the cost support logic. On the other hand, despite multiple rounds of buying the dip by traders and institutions during the continuous decline in Q4, steel prices have continued to fall. Therefore, most stainless steel industry participants remain pessimistic about the future market, believing that the bottom has not yet been reached and prices are expected to continue to fluctuate downward. On the morning of the same day, 304 cold-rolled resource prices in Wuxi were reported at 13,100-13,300 yuan/mt, 304 hot-rolled resource prices in Wuxi were reported at 12,600-12,700 yuan/mt, 316L cold-rolled resource prices in Wuxi were reported at 24,500-24,600 yuan/mt, 201J1 cold-rolled resource prices in Wuxi were reported at 7,500-7,700 yuan/mt, and 430 cold-rolled resource prices in Wuxi were reported at 7,350-7,550 yuan/mt. At 10:30 AM, the SHFE SS2412 contract price was 12,290 yuan/mt, with Wuxi stainless steel spot premiums at 280-480 yuan/mt (spot cut edge = uncut edge + 170 yuan/mt).