The stainless steel market is cautiously optimistic about demand for the rest of 2020. In many countries, activity has increased steadily month by month due to the relaxation of lock-in restrictions. However, market participants acknowledge that demand is unlikely to return to pre covid-19 levels in the final months of the year.

In recent months, the rising nickel price has driven the input and expenditure of most stainless steel manufacturers. The rise in nickel prices has helped to boost consumer sentiment. But many buyers question its sustainability. This led to the trend of stainless steel prices between different regions in August.

Asia
In China, Taiwan and South Korea, steelmakers have quickly passed on the rise in nickel costs. This is still the case despite reduced demand due to the coronavirus pandemic and the rainy season. But signs of higher sales prices are boosting confidence among Asian buyers.
In the past few months, many traders and distributors have only made purchases based on their immediate needs. Still, steelmakers hope that the direction of price increases will stimulate more replenishment in the short term.

Europe
In Europe, by contrast, activities across multiple end-user sectors, though small, have recently been encouraged, but they have encouraged market participants. Short term demand is relatively healthy, although many buyers are cautious about future demand.
It is believed that the price of stainless steel in Europe has reached the lowest point in the current cycle. Producers are likely to try to raise prices from September. Steel producers' continued capacity constraints will support this.

The attractiveness of import quotations has declined due to the restriction of EC safeguard quotas. In addition, some Asian suppliers have raised their prices, making them less competitive with EU buyers.

U.S.A
The U.S. market continues to work hard to cope with the impact of covid-19 infection rate. In August, activities increased, but overall demand remained at a low level. As a result, the level of discounts from us mills remained unchanged this month.
Some market participants are optimistic about the improvement in the pace of recovery after the US presidential election in early November.