Stainless Steel Inventory Continues to Expand, Market Pressure Increases [SMM Analysis]

February 27, 2025—

From February 21 to 27, stainless steel inventories in Wuxi and Foshan markets increased to varying degrees, with total inventory rising to 1.0104 million mt, up 5.36% WoW. The upward trend in 300-series cold-rolled inventory was particularly evident. High inventory levels may exert downward pressure on stainless steel prices, and changes in the supply-demand pattern are worth monitoring.

On February 27, the total stainless steel inventory in Wuxi and Foshan markets reached 1.0104 million mt, compared to 959,000 mt on February 20, up 5.36% WoW. In the Wuxi market, 200-series inventory rose from 109,300 mt to 110,700 mt, up 1.28% WoW; 300-series inventory increased from 344,900 mt to 373,400 mt, up 8.26%; and 400-series inventory grew from 88,100 mt to 95,200 mt, up 8.06%. In the Foshan market, 200-series inventory rose slightly from 171,200 mt to 172,000 mt, up 0.47%; 300-series inventory increased from 201,700 mt to 210,000 mt, up 4.12%; and 400-series inventory grew from 43,800 mt to 49,100 mt, up 12.10%. The overall increase in inventories across all series reflects the current ample supply in the market.

Looking at inventory trends over the past year, stainless steel inventories in Wuxi and Foshan markets have shown overall fluctuations. In particular, 300-series cold-rolled inventory has exhibited a clear and sustained upward trend. This inventory growth trend may be attributed, on the one hand, to stainless steel producers maintaining high production levels, leading to a continuous increase in supply; on the other hand, the slow recovery in downstream demand has failed to absorb the additional inventory in a timely manner, resulting in continuous accumulation.

Looking ahead, under high inventory conditions, the stainless steel market faces significant destocking pressure. After March, the demand side may see positive changes, with demand from industries such as construction and home appliances rebounding, which could help alleviate inventory pressure.

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