Since the beginning of September, the market quote of 430/2B has remained stable at 8500-8550 yuan per ton. Due to the recent decline in ferrochrome raw material prices, the 430/2B quotation has been reduced by 50 yuan per tonne today. up to 8450-8500 yuan/ton.
Today, the main factory price of stainless imported AISI 201 high chromium alloy has been adjusted to approximately 8500-8700 yuan/50 basis tons, and then decreased by 100 yuan/50 basis tons. During the week, Tsingshan Group finalized the long-term purchase price of high chromium metal in November 2023 at 8,695 yuan/50 basis tons (cash including factory price tax), down 300 yuan/50 basis tons from the previous month. The bidding and procurement policies for representative steel mills in the north are yet to be announced.
Considering the current high market price of chrome at 8500 RMB/50 basis tons, the cost of cold-rolled 430 stainless steel is around 8237 RMB/ton, and cost support is weakening. In addition, a large number of 400 series resources arrived in the Wuxi market in early October, and during the National Day celebrations, sales stalled, causing inventory to accumulate. Current spot inventories are still at high levels.
Overall, transaction volume in the 400 series stainless steel market improved slightly this week compared to last week, and some traders offered profit on shipments to reduce inventories; With current inventories of 400 series stainless steel at high levels, manufacturers remain under sales pressure and downstream purchasing continues to be demand-driven. Price 430/2B is expected to be weak in the short term.