Futures prices rose, coupled with a shortage of arrivals, leading to a sixth consecutive weekly decline in stainless steel inventory [SMM analysis]

SMM reported on August 14 that during the week (August 8-14, 2025), the total inventory at the two major stainless steel markets in Wuxi and Foshan showed a destocking trend, declining from 954,000 mt on August 7, 2025, to 933,600 mt on August 14, representing a 2.14% WoW decrease.

This week, the social inventory of stainless steel has declined for the sixth consecutive week. This week, the SS futures successfully broke through previous resistance levels, with prices climbing above 13,000 yuan/mt, significantly boosting market confidence. In addition, stainless steel mills generally held a mindset of refusing to budge on prices and holding back sales, leading to a temporary reduction in arrivals during the week. Against the backdrop of rising prices, the margin for concessions by traders has further widened. With the approaching September-October peak season for consumption and the psychological effect of "rush to buy amid continuous price rise and hold back amid price downturn" in the market, trading activity performed well this week. However, the market has not yet fully escaped the influence of the off-season for consumption, with downstream end-users still showing low acceptance of high-priced goods. Currently, the high prices are more influenced by macro policies and futures capital pull-ups, with uncertainties and the potential for fluctuations. The fundamental support is not solid. Coupled with the increase in stainless steel production schedules in August, this poses additional pressure on the market's destocking capacity.

200-series: Wuxi's 200-series inventory decreased from 98,700 mt to 95,200 mt, a 3.55% drop; Foshan's 200-series inventory decreased from 155,900 mt to 150,100 mt, a 3.72% drop. 300-series: Wuxi's 300-series inventory decreased from 349,300 mt to 346,400 mt, a 0.83% drop; Foshan's 300-series inventory decreased from 211,200 mt to 200,500 mt, a 5.07% drop. 400-series: Wuxi's 400-series inventory increased from 82,200 mt to 83,300 mt, a 1.34% rise; Foshan's 400-series inventory increased from 56,700 mt to 58,100 mt, a 2.47% rise.