In recent months, the stainless steel market has shown signs of stabilization, with industry policies playing a key role in shaping the direction of development. It has been observed that since a sharp rise in stainless steel prices occurred in October last year, the overall trend has gradually become more predictable, and supportive government policies have further contributed to the industry's stability.
While domestic iron ore prices have surged over the past three months—rising from over $90 per ton to more than $150, an increase of nearly 80%—the prices of stainless steel materials have remained relatively stable. The rate of price fluctuations has stayed within normal ranges, which many businesses see as a positive sign.
Xia Mou, head of the Stainless Steel Material Department at Jindu Market, China Science and Technology Hardware City, noted that small price changes are actually beneficial for companies that prefer a steady and smooth business approach. “Businesses can operate normally, buy and sell without major disruptions, and maintain a stable environment,†he said.
There is a common perception among metal material traders that they aim to buy low when the market is slow and sell high when demand rises, thus maximizing profits. However, Xia explained that while this strategy can yield high margins, it also carries significant risks. Successful execution requires strong financial backing to stockpile inventory and keen market insight to time purchases and sales effectively.
During interviews with several business operators, it became clear that this approach is not widely adopted. Most merchants still prefer stable prices, believing that steady progress and long-term sustainability are the keys to success in the industry.
Government policies have also played a crucial role in driving industrial growth. Since the second half of last year, national initiatives have focused on improving the technical level of the steel sector, promoting structural adjustments, encouraging specialized and grouped development among special steel companies, and supporting the use of scrap as raw material. These efforts aim to boost domestic demand for high-quality stainless steel products.
According to industry analyst Yang, despite the rapid growth of the stainless steel market, consumption in rural areas remains low. This presents a significant opportunity for expansion. As the quality of stainless steel improves and urban populations grow wealthier, there is an increasing demand for premium stainless steel products. With the continued development of domestic industries, higher quality and more diverse stainless steel and corrosion-resistant alloy options are becoming essential to meet evolving market needs.
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