[SMM Analysis] Logistics Slowdown Causes Disruption in Goods Flow, Stainless Steel Social Inventory Rises Temporarily

SMM February 12, the total stainless steel inventory in Wuxi and Foshan markets showed a further buildup trend this week (February 6–12, 2026), decreasing from 868,600 mt on February 5, 2026 to 894,500 mt on February 12, 2026, up 2.98% WoW.

This week, social inventory of stainless steel continued to rise. SS futures were driven by news related to Indonesian nickel ore approvals, showing a strengthening and upward trend mid-week, providing some sentiment support to the market. Ahead of the Chinese New Year holiday, trading activity gradually cooled, with most traders already on holiday, leading to few actual transactions during the week. Coupled with the gradual suspension of logistics, some public warehouses were in a "inbound-only, no outbound" state, hindering the flow of goods and directly driving a noticeable increase in stainless steel social inventory this week. In terms of the nature of the inventory buildup, stainless steel social inventory typically experiences a seasonal rise during the Chinese New Year holiday period, which aligns with normal market patterns. Moreover, current inventory levels remain in the lower range, and the short-term accumulation has not created supply pressure. Combined with market optimism for the post-holiday "Golden March, Silver April" peak consumption season, market confidence is relatively strong. Overall, this week’s inventory buildup was mainly driven by the approaching Chinese New Year holiday, logistics constraints, and seasonal factors. Despite sluggish short-term transactions and rising inventory, supported by periodic futures strength, low inventory levels, and optimistic post-holiday expectations, overall market confidence remains solid, and the short-term seasonal inventory accumulation has not significantly suppressed the market’s long-term trend.