The stainless steel market has emerged from a trend that people have long dreamed of

Firstly, this round of increase has been ongoing since the 10th round, and some varieties have accumulated an increase of over 300 yuan/ton so far. Currently, production enterprises generally have objective profits, which will inevitably stimulate the power of steel mills to produce at full capacity. The originally scheduled maintenance plan will also be postponed.

Secondly, as the weather in the north becomes colder and colder in the future, it is foreseeable that cyclical demand will weaken. From the perspective of supply and demand fundamentals, it does not support the sustained rise of prices. Once the market mentality returns to rationality, a price correction is an inevitable trend. At that time, it is also easy to form a "stampede" event.

Finally, the price difference between the north and south markets is not large, especially for plate and belt resources. The price difference between the north and south is at the lower limit of the reasonable range, even upside down, which is not conducive to the circulation of resources in the north market in the future. At present, there is still some room for price difference in long material resources, but steel mills have not been proactive in moving resources south recently. The main reason is that the recent price increase in the north has accelerated, coupled with transportation issues and uncertainty in market judgment in the later stage, which has led to steel mills and merchants not being very enthusiastic about moving resources south.

Therefore, from the above aspects, the concerns of merchants are not unreasonable. Currently, prices are rapidly rising, and according to past patterns, it is easy to form periodic highs. Coupled with the market mentality's "fragility" under downward pressure, a "price war" may also be imminent. So, I hope that when the market is rapidly rising, everyone can be more calm and cautious, grasp the pace of import and export, and do not pursue high operations.