Chinese and German SS Round Bar markets showed contrasting July performance, with Chinese prices rising on improved market sentiment and futures support while German prices declined due to weak automotive demand and high inventories, reflecting different regional supply-demand fundamentals.
SS 304 Round Bar markets exhibited contrasting regional performance in July 2025, with Chinese Dainan prices advancing 0.5% while German prices declined by an equal margin. The divergent trends reflect varying market fundamentals, with Chinese markets benefiting from production discipline and futures market support, while German markets faced persistent demand weakness and inventory pressures despite stable production conditions.
Key Takeaways
Dainan prices rose 0.5% as improving sentiment overcame seasonal demand weakness, demonstrating positive SS Round Bar price momentum in China despite difficult fundamentals. Month-over-month, the output of stainless steel from the 300 series stayed almost unchanged at -0.03%, but active mill shipments reduced inventory pressures. As Indonesian smelters reduced their nickel content, high-grade nickel pig iron prices rose, supporting costs and deterring aggressive SS Round Bar discounting. Notwithstanding weak construction and conflicting automotive demand signals, trader activity was boosted by futures and spot price arbitrage opportunities, which preserved market liquidity.
Stable production conditions did not counteract demand headwinds, resulting in a 0.5% decline in the price of SS Round Bars in Germany. Reliable supply was ensured by domestic mills operating between 81 and 88% capacity, while major facilities, such as Aperam's Hagen, maintained high-capacity utilization at 92%. But demand was severely constrained by the seasonal slowdown in the automotive sector, and distributors were reluctant to make new purchases because of high inventory levels. Delivery schedules were prolonged by two to four days due to draft restrictions on the Rhine River and ongoing rail construction, which further complicated the market conditions for SS Round Bar.
SS Round Bar market recovery requires demand normalization from automotive and construction sectors, coupled with successful inventory management. Chinese markets show better positioning for autumn recovery while German markets need fundamental demand improvement.
As per ChemAnalyst, SS Round Bar markets is expected to maintain regional divergence through August, with Chinese prices likely supported by continued production discipline and expectations of September-October consumption peak season recovery. German markets may remain under pressure until automotive demand normalizes, and distributor inventory levels decline, though stable input costs should provide price floors and limit further significant declines in the near term.
