In recent months, the stainless steel market has shown signs of stabilization, with industry policies playing a key role in shaping its direction. It is reported that since the sharp rise in stainless steel prices last October, the overall trend has gradually become more predictable, and the relevant industrial policies have been supportive of long-term growth.
Despite a significant increase in domestic iron ore prices over the past three months—rising from over $90 to more than $150 per ton, an increase of nearly 80%—the prices of stainless steel materials have remained relatively stable. The rate of price fluctuation has stayed within normal ranges, which many businesses view as a positive sign.
Xia Mou, head of the Stainless Steel Material Co., Ltd. at the Jindu Market Metal Material Trading Zone in China Science and Technology Hardware City, said: “Small price fluctuations are actually beneficial for businesses that prefer a steady approach. It allows them to operate smoothly, buy and sell without unnecessary disruptions, and maintain a stable business environment.â€
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, aiming for substantial profits. However, Xia explained that while this strategy can yield high margins, it also comes with considerable risks. Successful execution requires strong capital reserves for stockpiling goods, as well as keen market insight to time purchases and sales effectively.
According to interviews with several business owners, this strategy is only a partial approach. Most companies still prefer stable pricing. They believe that steady, gradual progress is the best way to sustain long-term success.
Good policy support is driving industrial development. Since the second half of last year, national industrial policies have focused on improving the technical level of the steel industry, promoting structural adjustments, encouraging special steel companies to develop in a more specialized and grouped manner, and supporting the use of scrap as raw material. These policies also aim to boost domestic demand for high-quality special steel.
Industry analyst Yang noted that, despite rapid growth in the stainless steel market, consumption in rural areas remains low. This presents a huge untapped potential. As the quality of stainless steel products improves, urban populations with higher disposable incomes are increasingly looking to upgrade their consumption of stainless steel-related products, thus driving demand for premium stainless steel and corrosion-resistant alloys.
With the continued development of domestic industries, there is a growing need for higher-quality, more diverse stainless steel and alloy products to meet evolving market demands.
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