As of August 29, SMM total stainless steel social inventory was 967,900 mt, up 0.4% MoM and down 0.43% WoW. Among them, the inventory of 200 series stainless steel was 280,500 mt, up 0.19% WoW; the inventory of 300 series was 545,500 mt, down 0.57% WoW and down 0.15% MoM; the inventory of 400 series was 141,900 mt, down 1.08% WoW and up 1.61% MoM.
200 Series: Last week, the shipment volume of the 200 series in Fujian slightly decreased, but the overall supply of market resources such as Hongwang cold-rolled sources remained relatively ample. Currently, spot prices have basically fallen to the bottom, and downstream transactions are generally mediocre. The shipment situation of the 200 series in Foshan was relatively good, showing signs of peak season initiation. However, both supply and demand in Foshan increased, resulting in a slight inventory accumulation of 0.76%, with a larger accumulation in hot-rolled products.
300 Series: Last week, the total arrivals of the 300 series decreased. With the futures market correction, the circulation of low-priced cold and hot-rolled resources in the 300 series reduced, but further price increases were unlikely. In terms of transactions, downstream purchasing demand strengthened last week, but overall supply still exceeded demand. The 300 series inventory in Wuxi decreased by 0.32%, and in Foshan, it decreased by 0.92%.
400 Series: Due to the concentrated arrivals from steel mills in north China ending, the arrivals last week significantly decreased. Some downstream buyers started to stock up in advance for September, but mainly through inquiries, with actual demand maintaining restocking as needed. The inventory in Wuxi decreased by 1.23%, and in Foshan, it decreased by 0.71%. Recently, there is a trend of gradually increasing arrivals, and downstream demand for September also shows signs of release. Both supply and demand strengthened simultaneously, but the pressure on spot prices to rise has a weak stimulating effect on downstream purchasing, and social inventory may slowly decrease.
