Stainless Steel Inventory Declines for Ten Consecutive Weeks, Demand Gradually Recovers as Peak Season Arrives [SMM Analysis]

SMM, September 11: This week (September 5-11, 2025), the total inventory in Wuxi and Foshan, the two major stainless steel markets, showed a destocking trend, decreasing from 918,700 mt on September 4, 2025 to 902,600 mt on September 11, down 1.75% WoW.

This week, social inventory of stainless steel declined for the tenth consecutive week, approaching the 900,000 mt mark and essentially pulling back to the lower levels seen at the beginning of the year. As the traditional September-October peak season for consumption arrives, although recent SS futures have been volatile and failed to break through the previous 13,000 yuan/mt threshold, downstream markets maintain a heavy cautious wait-and-see attitude, with limited acceptance of high-priced supplies. However, with the arrival of the peak season and cooler weather, downstream demand is gradually recovering. Meanwhile, recent price increases for nickel and chromium, key furnace charge materials for stainless steel, have provided strong support on the cost side. Additionally, driven by macro tailwinds expected in September, the market maintains a bullish sentiment towards the stainless steel peak season. Furthermore, steel mills raised their listed prices this week, and inventory pulled back further.