Wuxi and Foshan Stainless Steel Inventory Slightly Changes: A New Market Landscape Under the Tug-of-War Between Sellers and Buyers [SMM Analysis]

On February 20, 2025, Shanghai Metals Market (SMM) released the weekly stainless steel inventory data for the Wuxi and Foshan markets (20250214-20250220). Overall, the total inventory in Wuxi and Foshan markets showed a slight increase, reaching 959,000 mt, up 0.88% WoW. By series, inventory performance varied: (1) The 200-series inventory declined. Wuxi's 200-series inventory dropped to 109,300 mt, down 3.36% WoW, while Foshan's 200-series inventory slightly increased to 171,200 mt, up 0.59% WoW. This may indicate relatively stable demand in the 200-series stainless steel market, with some enterprises consuming inventory to meet market demand, leading to a decline in Wuxi's inventory. (2) The 300-series inventory increased. Wuxi's 300-series inventory reached 344,900 mt, up 1.77% WoW, while Foshan's 300-series inventory rose to 201,700 mt, up 1.97% WoW. The rise in 300-series inventory may be related to the recent production pace of steel mills and the slow release of market demand. Although market demand provided some support, the growth was insufficient to fully absorb the additional production, resulting in inventory accumulation. (3) The 400-series inventory also increased. Wuxi's 400-series inventory reached 88,100 mt, up 1.03% WoW, while Foshan's 400-series inventory rose to 43,800 mt, up 0.92% WoW. The increase in 400-series stainless steel inventory, widely used in industrial applications, may suggest that demand from related downstream industries has not been fully released, and enterprises remain cautious in stockpiling. From the inventory trends in Wuxi and Foshan markets, inventory levels have fluctuated over the past year. Recent inventory changes reflect the market's gradual adjustment of the supply-demand balance. Demand side, although the macroeconomic environment and industry policies have provided some boost to stainless steel demand, the recovery pace of downstream industries varies, leading to uneven demand release. Supply side, steel mills' production plans and output adjustments directly impact inventory levels. Some mills may maintain high production levels based on market expectations, resulting in temporary inventory increases. From the current inventory situation, on one hand, the inventory increase may bring certain sales pressure, requiring enterprises to strengthen market expansion and adjust marketing strategies to digest inventory. On the other hand, a reasonable inventory level provides a buffer for enterprises to cope with market fluctuations. For traders, optimizing inventory structure to meet diverse customer needs can enhance market competitiveness. For end-users, stable inventory supply offers relatively consistent raw material support for production planning. Looking ahead, stainless steel market inventory changes will continue to be influenced by multiple factors. Further improvement in the macroeconomic situation, full recovery of downstream industries, and fluctuations in raw material prices will all impact the supply-demand balance. Enterprises need to closely monitor market dynamics and flexibly adjust production and operational strategies to adapt to the ever-changing market environment. Click to view SMM stainless steel spot historical prices. Click to view SMM stainless steel industry chain database.