Stainless Steel Weekly Inventory Slightly Increases, Facing Significant Pressure; Awaiting Downstream Demand Expansion to Alleviate Pressure

SMM, March 14，

From March 7 to March 13, 2025, stainless steel inventories in Wuxi and Foshan markets showed varying degrees of change across all series, with total inventory rising to 1.0117 million mt, up 0.63% WoW. Downstream purchases remained below expectations, leading to significant inventory pressure in the market.

By region and series, in the Wuxi market, 200-series inventory decreased from 103,700 mt to 100,500 mt, down 3.09% WoW, mainly due to limited arrivals from stainless steel mills for 200-series products and rising prices stimulating some enterprises to pick up goods actively. 300-series inventory increased from 377,800 mt to 380,900 mt, up 0.82% WoW, primarily because of higher arrivals from stainless steel mills, with many products concentrated in delivery warehouses. 400-series inventory dropped from 91,800 mt to 90,600 mt, down 3.57% WoW, mainly due to relatively small supply volumes, limited arrivals, and strong market acceptance of 400-series products, resulting in destocking.

In the Foshan market, 200-series inventory decreased from 176,800 mt to 175,400 mt, down 0.79% WoW, as downstream restocking was active during the local price increase period. 300-series inventory rose from 205,400 mt to 214,500 mt, up 4.43% WoW, as a large volume of overseas products arrived this week, with limited market absorption, leading to inventory buildup. 400-series inventory slightly declined from 49,900 mt to 49,800 mt, down 0.20% WoW.

Overall inventories in Wuxi and Foshan markets, as well as 300-series cold-rolled inventory, showed slight WoW increases. The peak season of March and April has not materialized, and with March already halfway through, downstream new orders remain limited. Current inventory levels and production schedules on the supply side indicate continued supply pressure.

It is expected that demand may rebound in mid-to-late March, potentially alleviating inventory pressure, though uncertainties remain. Moving forward, attention should be paid to the destocking pace of social inventory. If demand improves and destocking accelerates, the supply-demand structure will improve, providing price support. Conversely, if demand falls short of expectations, leading to inventory accumulation, the market will face downward pressure. Additionally, steel mill production schedules, raw material price trends, and macro policies will continue to influence stainless steel market inventories and prices.

If you have any questions regarding stainless steel inventory, please feel free to contact us: Chaoxing Yang at 13585549799 (WeChat ID is the same).

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