Stainless Steel Prices Rise Amid Favourable Macro Front, Boosting Transactions; Social Inventory Pulls Back but Remains at High Levels [SMM Analysis]

SMM, May 15,

This week (May 9-15, 2025), the total inventory at the two major stainless steel markets in Wuxi and Foshan showed a destocking trend, declining from 989,100 mt on May 8, 2025, to 980,700 mt on May 15, down 0.85% WoW. The inventory pressure on social stainless steel inventory has eased somewhat.

At the beginning of this week, significant positive signals emerged from the China-US negotiations, with notable tariff reductions, swiftly dispelling market pessimism. Boosted by this, the SS futures market surged significantly, with spot prices following suit. Market demand, which had been suppressed due to wait-and-see sentiment, was rapidly released, driving a notable rebound in trading activity in the stainless steel market, particularly for low-priced supplies, which were highly favored. Despite the overall stable arrivals of stainless steel this week, social inventory experienced a temporary pullback driven by the improvement in trading. However, market participants generally believe that the current surge in trading volume is mainly stimulated by price increases driven by favourable macro front, with no substantial improvement in the industry's fundamentals. Currently, social stainless steel inventory remains at historically high levels, and there are no obvious signs of significant production cuts from producers. Against this backdrop, the market remains cautious about whether consumption can sustain growth in the later period, worrying about insufficient demand sustainability after short-term concentrated procurement.

200-series: In Wuxi, 200-series inventory fell from 94,000 mt to 92,800 mt, a decrease of 1.28%; in Foshan, it dropped from 169,200 mt to 167,200 mt, a decrease of 0.95%. 300-series: In Wuxi, 300-series inventory declined from 360,700 mt to 357,700 mt, a decrease of 0.83%; in Foshan, it fell from 222,500 mt to 221,100 mt, a decrease of 0.63%. The price of 300-series stainless steel strengthened significantly due to the influence of the futures market, with good sales of low-priced supplies in the early stage and an overall pullback in inventory. 400-series: In Wuxi, 400-series inventory decreased from 88,200 mt to 86,300 mt, a decrease of 2.15%; in Foshan, it increased from 54,500 mt to 55,200 mt, a rise of 1.28%.