Overall, with the recovery of production in some steel mills and an increase in market arrivals, prices are expected to maintain a volatile trend in the short term. The market focus will be on the pace of arrivals and changes in market supply.
The recent state of the Chinese stainless steel market indicates an increase in production, potentially leading to improved supply. In December, the total production of major stainless steel enterprises in China significantly increased compared to November, with both 300 series and 200 series showing growth.
Particularly, the production of the 300 series increased significantly, positively impacting market supply. Additionally, some steel mills that had paused production for annual maintenance have gradually resumed, further strengthening supply expectations. However, some mills are still limited in their production capacity due to annual maintenance and financial constraints.
Looking ahead to January, with steel mills receiving good orders and prices tending to stabilize, it is expected that the production of the 300 and 400 series will remain stable. However, due to annual maintenance in some mills, the 200 series is expected to see a decrease in production. After effective inventory reduction, current market supply pressure is limited, but traders show low willingness to sell at reduced prices.