In the commodity markets, on the previous day, London Metal Exchange (LME) nickel prices closed down by $5 to $18,575 per ton, while the evening session of Shanghai nickel's main contract ended with a decline of ¥1,570 to ¥150,730 per ton.
On the macroeconomic front, there is heightened tension in the Israeli-Palestinian conflict, which raises concerns about the potential adverse effects of an escalation of the conflict. Derivative instruments indicate a probability of over 90% that the Federal Reserve will not raise interest rates in November, and major stock indices posted gains. Domestically, China is strengthening its multifaceted cooperation with other countries, and the market is witnessing a surge in repurchases. Additionally, more than 40 listed companies have announced that significant shareholders voluntarily commit to not reducing their holdings, which is contributing to improved market sentiment.
However, the stainless steel market is showing signs of weakness. Major steel plants reduced production levels, and maintenance efforts failed to impact the futures market positively. Goldman Sachs holds a bearish view on metals, and today nickel is experiencing a further decline. Stainless steel futures have transitioned from stability to oscillations, and the spot market has entered a period of consolidation, with mainstream players returning to the market.
Regarding grade 201 stainless steel, there were mixed price movements yesterday, with some upward and downward shifts. Later in the day, as grade 304 stainless steel saw price increases, there was some upward pressure on grade 201 as well. However, in the afternoon, some discounts were introduced to facilitate sales, which led to renewed interest in futures trading at lower levels.
In summary, today's cold-rolled grade 304 stainless steel market remains relatively stable, with many traders adopting a wait-and-see approach. As external markets show weakness, some agencies are starting to offer discounts to boost sales in the spot market, resulting in a subdued market atmosphere. Grade 201 stainless steel is mostly characterized by a wait-and-see approach, but there is increasing marketing enthusiasm. If grade 304 continues to weaken, there may be a need for further discounts to stimulate interest in grade 201.
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