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The Stainless Steel CR coil markets diverged in late July. This global trend was characterized by stable-to-slightly upward movement in China while there was a fall in prices in the USA. China maintained its relative price stability and slight upward movement was based on the mill putting prices up, policy support, and a prevailing lack of downstream demand. Prices fell in the USA due to weaker demand and reduced import costs (through falling shipping costs) resulted in a modest price correction in the market.
Chinese Stainless Steel CR coil prices, including 304, 201, and 430 grades, saw a strong start to the week with increases in major markets like Foshan and Wuxi. However, the momentum faded as spot transactions slowed down. The Stainless Steel CR coil market faces a significant lack of upward momentum, primarily because downstream sectors are in an off-season, leading to reduced consumption. Specifically, home appliance production is declining, contributing to slow inventory digestion. Although recent policy support and adjustments in mill pricing have instilled some market confidence, the fundamental issues of weak demand and market oversupply continue to restrain any significant price recovery for Stainless Steel CR coil.
The Stainless Steel CR coil market faces persistent oversupply in the near term. Weak manufacturing recovery, hampered by heavy rains and high temperatures, is suppressing demand. This forces buyers into essential-only purchases and expands traders' negotiation room, though sales volume remains challenging. Prices are expected to consolidate.
A marginal 0.5% decrease was observed in US Stainless Steel CR coil prices in late July, driven by a reduction in market demand. This slight downturn suggests the market is now better absorbing the impact of previous tariff adjustments, with declining freight rates also playing a role in the overall price decline.
In the US market for Stainless Steel CR coil, declining ocean freight rates (for example from Shanghai to LA and from Shanghai to NY) are lowering import costs and adding to an already abundant supply from Asia and Europe. While this is a net positive for traders, it is occurring in an environment where demand has softened, specifically from the US construction sector which has deteriorating overall business conditions.
Looking ahead to mid-August, the Stainless Steel CR coil market is preparing for changes driven by two key factors: the reinstatement of higher US tariffs on Chinese goods and subsequent reductions in transpacific shipping services by carriers. These developments are likely to affect the availability and cost of imported Stainless Steel CR coil.
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