Stainless Steel Inventory Declines for Seven Consecutive Weeks, Transaction Weakness Narrows the Decrease [SMM Analysis]

SMM August 21st report, this week (August 15-21, 2025), the total inventory of the two major stainless steel markets in Wuxi and Foshan showed a destocking trend, decreasing from 933,600 mt on August 14, 2025 to 933,400 mt on August 21, down 0.02% WoW.

This week, social inventory of stainless steel continued its downward trend for the seventh consecutive week, but the decline has significantly slowed, with only a slight reduction in inventory within the week. Meanwhile, the previously strong SS futures pulled back sharply, with prices falling to early August levels, leading to a loss of market confidence. Affected by the futures, the spot market also weakened, with stainless steel spot prices dropping and giving up previous gains. In this context, downstream end-users, influenced by the "rush to buy amid continuous price rise and hold back amid price downturn" mentality, became more cautious and watchful, with most maintaining just-in-time procurement, resulting in weaker market transactions. However, as the peak consumption season approaches, and with arrivals remaining low this week, coupled with heavy rains in Foshan, overall arrivals were low, leading to a slight pullback in social inventory. Nevertheless, the expected increase in stainless steel production schedules for the month, along with the approaching month-end cargo pick-up by agents, suggests that destocking pressure may further intensify next week.

200-series: Wuxi's 200-series inventory decreased from 95,200 mt to 94,800 mt, down 0.42%; Foshan's 200-series inventory increased from 150,100 mt to 150,200 mt, up 0.2%. 300-series: Wuxi's 300-series inventory increased from 346,400 mt to 347,100 mt, up 0.2%; Foshan's 300-series inventory decreased from 200,500 mt to 200,000 mt, down 0.07%. 400-series: Wuxi's 400-series inventory decreased from 83,300 mt to 83,000 mt, down 0.36%; Foshan's 400-series inventory increased from 58,100 mt to 58,300 mt, up 0.34%.