Futures Fluctuate, Spot Market Stays Firm Amid Weak Demand – 2023 Week 1 China Stainless Steel Industry Summary and Outlook (Jan 1-7)

I. Stainless Steel Market Overview This Week:
Futures prices showed a downward trend with volatility, while spot prices remained relatively firm. Downstream demand was weak, leading to a cautious market atmosphere. Traders and downstream players had expectations for pre-Spring Festival stockpiling, but overall transactions were moderate due to the off-season impact.

1. Inventory:
Influenced by pre-festival stocking, inventory levels significantly dropped, easing the pressure on spot resources.

2. Raw Material Prices:
Slight increase this week, with steel mills operating at marginal profits.

3. Market Outlook:
The market will closely monitor stockpiling activities of traders and downstream sectors, anticipating volatile stainless steel prices.

4. Uncertainty Risks:
Geopolitical situations, Federal Reserve policies, and the domestic economic recovery in China.

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