[SMM Analysis] SS declined, combined with persistently weak transactions during the off-season, and stainless steel inventory stopped its decline, stabilized, and slightly accumulated.

Published: Jun 25, 2026 17:21

Save

[SMM Analysis] SS Decline and Weak Off-Season Trading Keep Stainless Steel Inventory Basically Stable with Slight Buildup SMM, June 25: This week, stainless steel social inventory ended its previous destocking trend, and under off-season conditions, overall inventory stabilized and edged up slightly. Total inventory in the two core markets of Wuxi and Foshan rose slightly, from 932,000 mt on June 18, 2026, to 932,800 mt on June 25, up 0.06% WoW. The inventory shifted from continuous destocking to slight buildup, with off-season inventory pressure becoming marginally apparent. This week, the stainless steel market was fully in the traditional consumption off-season, with end-user rigid demand support continuing to weaken. During the week, metals futures weakened across the board, coupled with news-related disturbances from Indonesia. SS futures drifted lower, bearish sentiment in the market intensified, downstream end-users became more wait-and-see, overall purchasing willingness was insufficient, and spot market trading remained weak. This week, news of maintenance and production cuts at steel mills continued to simmer, with some mills reducing shipments, leading to a marginal decline in market supply. Meanwhile, traders, amid pessimistic expectations, showed low willingness to actively purchase, and generally adopted strategies of selling at lower margins and reducing inventory to accelerate the turnover of goods on hand. This largely offset the inventory buildup pressure from weak off-season demand, keeping overall social inventory basically stable with only a slight increase. Overall, the core factors behind the shift from destocking to slight inventory buildup this week were weak end-user rigid demand during the off-season and weakening futures dampening market sentiment. Meanwhile, supply contraction from steel mill maintenance and traders' proactive destocking provided critical support to prevent a pronounced inventory buildup. At this stage, the market's off-season characteristics are increasingly evident...

SMM June 25 report: This week, stainless steel social inventory reversed its earlier continuous destocking trend, leveling off and edging slightly higher amid the off-season. Total inventory in the two core markets of Wuxi and Foshan inched up from 932,000 mt on June 18, 2026, to 932,800 mt on June 25, up 0.06% WoW, shifting from persistent destocking to a mild buildup, with marginal off-season inventory pressure emerging.

This week, the stainless steel market was fully in the traditional consumption off-season, with end-user rigid demand support steadily weakening. Metals futures declined broadly during the week, and coupled with Indonesia-related news disruptions, SS futures drifted lower, fueling bearish sentiment and deepening downstream end-user wait-and-see attitudes. Overall purchasing willingness was insufficient, and spot market transactions remained persistently weak. Maintenance-driven production cut announcements from steel mills continued to ferment this week, with some mills reducing allocations, leading to a marginal decline in market supply. Meanwhile, amid pessimistic expectations, traders showed little initiative to purchase and generally resorted to selling at discounts to reduce inventory, accelerating the turnover of in-market goods and largely offsetting the inventory buildup pressure from weak off-season demand. As a result, total stainless steel social inventory remained basically stable, with only a slight uptick. Overall, soft end-user rigid demand in the off-season and weakening futures that dragged down market confidence were the core drivers behind the shift from destocking to inventory buildup this week, while supply contraction from mill maintenance and traders’ active destocking and selling provided key support in preventing a pronounced buildup. At this stage, off-season characteristics are prominent, with end-user transactions lacking sustainability and the overall market remaining weak.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

56 mins ago

European Scrap Tungsten Prices Rise, Indian Prices Fall Amid Varied Market Trends

[SMM Scrap Tungsten Flash] SMM, June 25 – This week, the ex-China scrap tungsten market showed divergent trends. European scrap tungsten alloy blade prices were raised to €90-95/kg, up 5.71% WoW. According to traders, the scrap recycling systems of European tool enterprises continued to expand, and scrap demand and trading remained active. Indian scrap tungsten drill bit prices were lowered to $120-140/kg, down 3.7% WoW. Local scrap market demand activity was subdued. On the one hand, this was influenced by the slight quiet decline in Chinese prices; on the other hand, some downstream sodium tungstate enterprises in the scrap sector indicated that end-users in Europe and the US, having established their own recycling systems, had seen weaker demand for raw materials such as sodium tungstate.

56 mins ago

1 hour ago

[SMM Analysis] May Magnesium Exports Down 4% MoM, Q2 Market Under Pressure Amid Geopolitical Risks

In May, China's magnesium product exports fell 4% MoM to 37.6kt. Magnesium ingot exports rose 13.7% MoM on auto and aluminum demand, while magnesium powder and alloy dropped 31.3% and 22.5% due to weak overseas demand. Japan's Jan-May imports surged 76.6% YoY, likely front-loaded, with downside risks in H2. Full-year exports are still expected to see modest growth despite headwinds from freight costs and maintenance shutdowns.

1 hour ago

[SMM Analysis] Brief Analysis of May Tungsten Import and Export Market

SMM News Release, June 22 According to customs data, China’s total exports of tungsten smelting products and tungsten materials reached approximately 1,063.6 tons in May 2026, down 11.9% month-on-month and 17.9% year-on-year.

1 hour ago