Stainless Steel Shipments Intensify Inventory Buildup by 0.72%; Social Inventory Expected to Continue Increasing [SMM Analysis]

As of November 29, SMM stainless steel social inventory stood at 983,400 mt, up approximately 0.72% WoW. Among them, the inventory of the 200 series was 291,400 mt (up 0.80% WoW), the 300 series was 548,600 mt (up 0.28% WoW), and the 400 series was 143,300 mt (up 2.31% WoW).

By series, the arrivals of the 200 series were relatively normal. Wuxi saw a significant inflow of Indonesian 300 series cold-rolled resources and shipments from Fujian stainless steel mills. In Foshan, a large amount of 300 series cold-rolled resources from east China stainless steel mills arrived. For the 400 series, arrivals increased significantly due to the month-end settlement week for state-owned stainless steel mills. From the supply side, stainless steel shipments were generally high, with shipping data showing intensive shipments in late November. However, most public warehouse data still indicated destocking. This was mainly because most shipments arrived last Thursday or later, causing a delay in inventory data statistics. Additionally, many resources were transferred to forward warehouses upon arrival and did not enter public warehouses. Due to significant price drops, steel mill agents faced sales pressure and had low willingness to pick up goods, resulting in minimal inventory increases for agents and traders. On the demand side, as temperatures dropped, operating rates declined, leading to continued weakening demand and significant sales pressure. It is expected that stainless steel social inventory will remain in an inventory buildup cycle.