With Normal Stainless Steel Shipments During the Holiday And Fewer Sales Days, Overall Inventory Increased by 1.12% [SMM Analysis]

As of September 19, SMM social inventory of stainless steel was 971,400 mt, up 1.12% WoW. Among them, the inventory of 200-series stainless steel was 281,300 mt, up 0.63% WoW and 0.46% MoM; the inventory of 300-series stainless steel was 549,600 mt, up 1.54% WoW and 0.18% MoM; the inventory of 400-series stainless steel was 140,500 mt, up 0.52% WoW and down 2.05% MoM.

200-series: The recent shipment volume of 200-series stainless steel was normal, but shipments of some resources in South China were delayed due to the typhoon, resulting in limited overall increase. Additionally, the demand was weak, and actual transactions were poor. After the steel mills lowered the guidance price on Thursday, the market price further weakened, and the short-term shipment situation remained weak. The social inventory in Wuxi increased slightly by 0.31% WoW, and in Foshan by 0.83% WoW.

300-series: During the Mid-Autumn Festival, the shipment volume of 300-series stainless steel was full. There were more cold-rolled stainless steel arrivals in Wuxi, while hot-rolled stainless steel arrivals were relatively less, but both increased significantly. Some shipments were delayed, but road transportation in Jiangsu and Shandong was normal. Coupled with fewer sales days this week and the impact of the typhoon on power outages in the Wuxi market, there was a significant inventory increase of 1.7% WoW. The ship arrival volume in Foshan was higher, but the total cargo arrival volume was slightly lower than in Wuxi, with an inventory increase of about 1.3% WoW.

400-series: Recent arrivals were relatively few, coupled with regular shipments, resulting in small inventory fluctuations in Wuxi and Foshan. The inventory in Wuxi increased slightly by 0.77% WoW, while in Foshan it remained basically flat with a slight decrease of 0.07% WoW. However, next week is the settlement week, and arrivals are expected to increase.