The Stainless-Steel Hot-Rolled Coil (SSHRC) market faced significant headwinds in April, with prices declining sharply in key manufacturing hubs. Both the Germany and China recorded a fall in prices, highlighting widespread challenges affecting this crucial industrial material.

Market Highlights:

• SSHRC prices fell 3% in Germany and 5% in China during April
• European mills slashed May delivery prices by €20-30 per tonne
• LME nickel inventories surged to 206,430 mt by April-end
• China's monthly SSHRC production declined 1.91% with 300-series output down 4.19%
• Buyer behaviour shifted to minimal, just-in-time purchasing patterns
• German passenger car registrations dropped 4.2% month-on-month

European SSHRC producers are battling excess supply and dull demand, forcing them to implement substantial price cuts. "Orders have dried up almost completely," admitted one German distributor. "We're seeing customers who'd normally place quarterly orders now buying hand-to-mouth." This hesitancy reflects broader economic uncertainty, with service centers reporting that customers are executing transactions sporadically and often only on back-to-back arrangements.

The supply glut emerged after major European mills temporarily halted production earlier this year—a measure that briefly balanced the market before oversupply conditions returned. European SSHRC producers now find themselves cutting May delivery prices by €20-30 per tonne to stimulate buying activity.

Meanwhile, China's SSHRC landscape tells a similar story of decline but with unique regional dynamics. The anticipated "golden March and silver April" peak season failed to materialize, with SSHRC prices plummeting 5% amid shifting production strategies. Chinese mills are pivoting away from the troubled 300-series, which saw a 4.19% production decline, toward more resilient 200-series and 400-series products.

This strategic shift comes in direct response to rising U.S. tariffs on Chinese goods, which have disproportionately impacted 300-series SSHRC profitability. With China's passenger vehicle retail sales down 9.4% month-on-month in April, downstream demand shows little sign of improvement.

Raw material fluctuations further complicated the SSHRC outlook, with nickel prices showing mixed performance throughout April. LME three-month nickel prices trended upward before April 17 but subsequently stabilized. The market remains oversupplied with refined nickel despite some inventory drawdowns.

As per ChemAnalyst, the SSHRC market faces continued pressure through Q2 2025, with any meaningful recovery dependent on three key factors: stabilization in nickel prices, improved automotive sector performance, and reduced market anxiety about global trade tensions. European producers may need to implement further production cuts to balance the market, while Chinese mills will likely continue their strategic shift away from 300-series production until market conditions improve or trade policies evolve. Buyers should remain cautious but watch for potential price bottoming by mid-summer if current inventory reduction efforts prove successful.