Geopolitical boost supports cost foundation; optimistic outlook after stainless steel futures and spot prices strengthen

The SS futures market is experiencing volatile upward movement. Driven by the weekend escalation of Middle Eastern geopolitical conflicts, precious metals and crude oil-related futures products led the gains, followed by base metals, with SS futures moving in tandem and ultimately closing at 14,385 yuan/ton. In the spot market, supported by the relatively strong performance of SS futures and the further surge in high-nickel pig iron raw material prices, stainless steel spot prices have risen slightly; however, downstream end-user production remains insufficient, and overall purchasing attitude is cautious. Nevertheless, supported by cost factors, the seasonal peak period of “Golden March and Silver April,” and recent futures price increases, traders generally remain optimistic about the market outlook. The main contract of SS futures is trending higher. At 10:30 AM, SS2604 was quoted at 14,160 yuan/ton, up 10 yuan/ton from the previous trading day. In Wuxi, the spot premium/discount for 304/2B is in the range of 360-560 yuan/ton. In the spot market, Wuxi cold-rolled 201/2B coils remain stable; cold-rolled rough edge 304/2B coils in Wuxi increased by 50 yuan/ton, and in Foshan by 50 yuan/ton; Wuxi cold-rolled 316L/2B coils rose by 200 yuan/ton; hot-rolled 316L/NO.1 coils in Wuxi increased by 300 yuan/ton; cold-rolled 430/2B coils in Wuxi and Foshan remain stable. (SMM)