In contrast to the weak demand, the supply side has not made corresponding adjustments. The production enthusiasm of the 316L stainless steel sheet factories has not diminished. Although the monthly production capacity utilization rate has slightly declined, it still remains at a relatively high level. There were neither concentrated maintenance arrangements nor large-scale production cuts during the month. Only some private 316L stainless steel sheet factories reduced production passively due to the arrival of raw materials or the narrowing of profit margins. However, this had a negligible impact on the overall output. From the survey results, most 316L stainless steel sheet factories in July still had no maintenance plans, and the production capacity utilization rate was likely to continue operating at a high level, which meant that the supply pressure would be difficult to be effectively relieved in the short term.

Looking forward to July, the market logic of 316L stainless steel sheets is unlikely to see a fundamental change. From the cost side, the previous favorable raw material conditions have basically been fulfilled, and the marginal support from costs has weakened. From the supply side, new production capacity continues to be released. Long-process steel mills have generally received fewer orders, and independent rolling enterprises have received poorer orders. State-owned enterprises have already reported that the order pressure in early August is relatively large, but the production of 316L stainless steel sheets is still unlikely to shrink significantly in the short term. On the demand side, July is still in the traditional off-season, and the constraints of rainy weather on outdoor construction and logistics are still present. Except for the home appliance industry, which performed relatively well due to seasonal consumption and overseas orders, it was lower than other downstream industries. The shrinking orders of component enterprises directly reflected the slowdown in the production rhythm of vehicle manufacturers. Although exports have increased, they are constrained by trade frictions and license management, and have limited the alleviation of the supply-demand contradiction in the domestic 316L stainless steel sheet market. Under this background, traders will continue to sell at discounted prices to recover funds, and the market sentiment is cautious. There is a possibility that the price level will further decline. In summary, the 316L stainless steel sheet market in July is likely to continue a weak and volatile pattern, lacking upward driving factors, and will need to test new cost support levels to decline further.