Stainless Steel Inventory Declined for Nine Consecutive Weeks, Dropping to Early-Year Levels [SMM Analysis]

SMM reported on September 4 that during the week (August 29-September 4, 2025), the total inventory of the two major stainless steel markets in Wuxi and Foshan showed a destocking trend, dropping from 928,800 mt on August 28, 2025 to 918,700 mt on September 4, down 1.09% WoW.

This week, the social inventory of stainless steel declined for the ninth consecutive week, with inventory levels pulling back to February levels. Although downstream end-users remained cautious to some extent and had limited acceptance of high-priced materials, the SHFE nickel futures surged significantly due to the turmoil in Indonesia, followed by the rise in SS futures. Coupled with the continuous destocking of stainless steel, the shipment pressure on steel mills has eased notably. At the beginning of the week, large stainless steel mills further raised their listed prices, pushing up market purchase costs. Additionally, the US Fed is expected to cut interest rates in September, and China is expected to implement quantitative easing policies, leading to an overall upward trend in commodity prices. As the traditional September-October peak season officially begins, downstream end-users are gradually recovering, with just-in-time procurement volume increasing. The stainless steel market is generally bullish on the outlook, and social inventory is further declining.