The 321 stainless steel sheet factories still have the willingness to maintain prices, but the profit margins continue to shrink.
Supply side and profits: The 321 stainless steel sheet factories still have the willingness to maintain prices, but the profit margins continue to shrink.
From the supply side perspective, the upstream 321 stainless steel sheet factories have a strong willingness to maintain prices and stabilize them. Factory prices remain relatively firm. However, the weak demand from the downstream side forces spot sales to offer discounts, which has continuously expanded the bargaining space in the 321 stainless steel sheet market. There is a significant price gap between factory prices and market prices, and the price difference between the buying and selling ends of traders has continuously narrowed. The profit margins have been continuously compressed, and the business pressure has been significantly increased. The 321 stainless steel sheet market is sluggish in trading, with a prominent contradiction between supply and demand. The trading difficulties for 321 stainless steel sheet dealers have significantly increased, and pessimistic sentiments have spread.
Short-term outlook: The impact of the rainy season will not change, and the price will continue to decline weakly.
In the short term, there are no obvious signs of improvement in the rainy season weather, and the terminal demand is difficult to recover. The willingness of the 321 stainless steel sheet factories to maintain prices cannot be effectively transmitted to the spot market. Merchants still mainly adopt strategies of offering discounts to reduce inventory and return funds, and the transaction volume is unlikely to improve. It is expected that the 321 stainless steel sheet prices will maintain a weak downward trend in the short term. In terms of operation, it is recommended to purchase goods as needed and strictly control inventory risks.
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