As Stainless Steel Arrivals Increased, Social Inventory Increased by 1.03% WoW [SMM Analysis]

As of October 24, SMM stainless steel social inventory was 998,200 mt, up about 1.03% WoW. Among them, the inventory of 200-series stainless steel was 288,700 mt, up about 1.52% WoW; the social inventory of 300-series stainless steel was about 567,700 mt, up about 0.42% WoW; and the social inventory of 400-series stainless steel was about 141,800 mt, with an inventory buildup of about 2.53% WoW.

200-series: In late October, steel production and shipments from steel mills in South China increased significantly. Recent arrivals were high, but shipments were poor, leading to an overall inventory buildup. Inventory buildup in Wuxi was 2.82%; in Foshan, hot-rolled stainless steel inventory buildup was significant, while cold-rolled stainless steel inventory remained stable, with an overall buildup of 0.75%.

300-series: Post-holiday shipments of 300-series were high, with recent arrivals continuing. By region, both hot-rolled and cold-rolled stainless steel arrivals and shipments in Wuxi were high, with recent arrivals decreasing and a slight reduction in cold-rolled stainless steel inventory. In Foshan, hot-rolled stainless steel inventory was tight earlier, while cold-rolled stainless steel inventory was high. However, this week's arrivals were mainly hot-rolled stainless steel, and the overall 300-series inventory is expected to continue accumulating.

400-series: Last week, 400-series shipments were good, and arrivals were small, leading to a significant inventory reduction. This week, due to the steel mill settlement period, shipments were concentrated, and transactions were weak, resulting in a significant inventory buildup.