Stainless steel prices rose but demand remained stable, 300-series stainless steel social inventory slightly increased by 0.69% [SMM Analysis]

As of May 30, the total social inventory of stainless steel was approximately 968,400 mt, up about 5.87% MoM and 0.18% WoW. Among them, the social inventory of 200-series stainless steel was about 268,300 mt, down 0.46% WoW, versus 557,500 mt for 300-series stainless steel (+0.69% WoW), and 142,600 mt for 400-series stainless steel (-0.61% WoW).

200-Series: Last week, the spot transactions of 200-series stainless steel were relatively modest. After steel mills raised the guidance prices of some #201 stainless steel resources, transactions increased. In Foshan, both 200-series CRC and HRC saw some digestion, with an overall inventory reduction of 0.8% WoW. In Wuxi, HRC faced slightly higher inventory pressure, with an inventory increase of 2.23% WoW, while CRC inventory decreased by 0.49% WoW, leading to a slight overall inventory decline.

300-Series: Last week, the supply of 300-series stainless steel shrank WoW. The total port arrivals in Wuxi were largely stable from a week ago, but the average daily shipments from steel mills decreased. Due to sluggish downstream demand, the overall digestion of 300-series stainless steel was weak. In Foshan, there was a significant amount of shipments last week. After the price increased, end-users adopted a wait-and-see attitude, resulting in poor sales and an overall inventory increase of 1.93% WoW for 300-series stainless steel.

400-Series: Recently, 400-series orders mostly come from rigid demand, with overall supply and demand holding stable. In Wuxi, due to the cyclical reduction in shipments, the total inventory of 400-series stainless steel decreased by 1.01% WoW. In Foshan, HRC inventory decreased but CRC digestion was weak, leading to a slight overall inventory increase of 0.38% WoW.

In summary, recent stainless steel transactions have been sluggish. After steel mills' profits narrowed, June scheduled production may be slightly reduced. Steel mills still controlled shipments. With the recent rebound in stainless steel prices, downstream transactions improved somewhat. Therefore, inventory is expected to decrease this week.