Minmetals Futures: The Fundamentals of Stainless Steel Still Have Support

From the supply side, raw material supply has somewhat recovered, but under the influence of steel mills’ price caps, the pace of shipments by agents has generally slowed down. On the demand side, due to the seasonal off-peak period before the Spring Festival, overall market purchasing willingness is weak, and acceptance of high-priced resources is limited. Traders mostly choose to actively ship goods, reduce inventories, and focus on fulfilling previous orders, with a weaker willingness to stock up proactively. In February, steel mills collectively reduced production, and the market generally believes that subsequent supply will gradually tighten, with short-term supply pressure being relatively manageable. Overall, the fundamentals of stainless steel still have support, and the strategy of buying on dips remains unchanged. (Wukuang Futures)