How Will Domestic Stainless Steel Market Digest Inventory Surplus amid Poor Exports?

SHANGHAI, Nov 4 (SMM) – The Foshan market saw an inventory surplus compared with September. The power rationing was basically eased as of mid-October, and the arrivals were stable. The operating rates of steel mills in October were largely unchanged from September. The supply was slightly tight, but the downstream purchase was sluggish due to the high prices.

The stainless steel exports were weaker than that in Q3. Some traders said that the export orders decreased by 70%, and the stranded goods had to be consumed in the domestic market.

The the previous years, the traders always restock goods before the Chinese New Year, which would lead to the inventory decline. However, the traders said that they will prioritize the shipments for the fund return this year.

The guide prices released by the steel mills stabilised the market quotations on Wednesday, and the downstream purchase increased amid the improved market sentiments. The transactions are expected to pick up in recent days. The inventory changes in the end of the year will depend on the market sentiments and demand.