Stainless steel market situation.

In 2024, the international stainless steel market continues to face multiple challenges. Despite the relatively stable performance of the Chinese market, stainless steel demand in the rest of the world remains subdued. Stainless steel production in the United States declined by 13.5% in the first half of 2023, while global stainless steel scrap smelting production also declined by 2%. As an important raw material for stainless steel, the price of nickel has fallen by 48% in the past year, further suppressing the upside of stainless steel prices [28†source] [30†source]. This market situation is mainly affected by the imbalance between supply and demand. Due to the market recovery after the novel coronavirus outbreak is not as expected, especially weak consumer demand in major economies such as the United States and Europe, and the continued low nickel price, resulting in stainless steel prices continue to be under pressure for most of 2023. Despite some inventory recovery in some regions, inventories of long-form products remain high, indicating that demand has not fully recovered [30†source]. In addition, the reduced trust in nickel price fluctuations within the industry has made many stainless steel producers and traders cautious about the market outlook. In response to these uncertainties, some companies are starting to reduce their dependence on nickel prices and focus instead on supply and demand dynamics, which could affect the pricing mechanism for stainless steel in the future [30†source]. From a global perspective, although the pressure on the stainless steel market in 2024 will not quickly subside, the market may see some degree of stability as the industry gradually adjusts to the new normal. However, short-term domestic demand and the recovery of prices remain significant challenges [29†source] [30†source].