Under the impact of tariffs, stainless steel inventory increased and destocking is expected next week

SMM April 10 News,

The total stainless steel inventory increased this week: the total stainless steel inventory in Wuxi and Foshan markets rose from 983,500 mt on April 3, 2025, to 1.0022 million mt on April 10, up 1.90% WoW. Due to the impact of tariffs on orders from downstream export enterprises, stainless steel downstream enterprises were cautious in purchasing, with a strong wait-and-see sentiment, leading to increased inventory pressure in the market.

The inventory performance varied across regions and series, with a general trend of slight inventory buildup.

In the Wuxi market, the 200-series and 300-series inventories increased by 1.05% and 2.76% WoW, respectively, showing a slight accumulation. The 300-series saw a relatively larger increase, as steel mills increased shipments and downstream purchasing was not active due to the significant price decline of the 300-series. The 400-series inventory decreased from 88,200 mt to 88,000 mt, down 0.23% WoW, with a relatively small decline and slow destocking pace. Raw material cost support had a minor impact on prices, and the market supply and demand remained relatively stable.

In the Foshan market, the 200-series, 300-series, and 400-series inventories increased by 1.33%, 2.13%, and 1.90% WoW, respectively.

SMM Analysis: The tariff issue continues to ferment, hindering the export of stainless steel products, and market expectations for future demand have weakened. Traders and downstream enterprises are more cautious in purchasing, with low willingness to stockpile, making inventory reduction difficult. In terms of supply: steel mills have maintained relatively stable production recently, shipping as planned, leading to continued high and further increasing market arrivals. In terms of demand: April saw just-in-time restocking for stainless steel consumption, with limited new orders and insufficient downstream purchase willingness, making it difficult to effectively consume market inventory.

As the tariff issue gradually digests on the sentiment front, cautious sentiment may be released, potentially boosting downstream purchasing. Inventory is expected to destock next week.

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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