Stainless Steel Market to See a Supply Surplus in May

SHANGHAI, May 22 (SMM) - As of April 27, the stainless steel social stocks totalled about 769,100 mt, down 0.61% from the previous week and 2.10% from the previous month. The inventory of 200-series stainless steel stood at 182,100 mt, down 0.92% WoW but up 16.66% MoM, versus 300-series at 462,300 mt, down 0.64% WoW and 2.08% MoMl and 400-series at 124,700 mt, flat from the previous week but down 0.87% on a monthly basis.

200-series stainless steel society inventory fell slowly in April, because the downstream companies ramped up pick-up of spots at the end of the month amid the normal shipments of stainless steel mills.

In terms of 300-series stainless steel, the downstream companies were less willing to restock before the Labour Day holiday, pushing up its inventory in the Wuxi market though some spots were delivered for SHFE stainless steel contract. According to SMM research, at the end of April, the stainless steel mills slowed down the spot shipments to the market, and a large amount of 300-series stainless steel will arrive at the market after the Labour Day holiday. 400-series stainless steel transactions improved slightly, and the inventories were mainly held by the first-level agents.

In general, the overall stainless steel social inventory dropped more slowly in April compared with March. Since stainless steel will still be in a supply surplus in May with more projects put into production, the social inventory will grow further.