Stainless Steel Market Weakness Amid Underperformance in Peak Season and Macro Disturbances, Social Inventory Surged Significantly Within the Week [SMM Analysis]

SMM October 16 - This week (October 10-16, 2025), the total stainless steel inventory in the Wuxi and Foshan markets showed an inventory buildup trend, increasing from 905,600 mt on October 9, 2025 to 952,600 mt on October 16, up 5.19% WoW.

This week, the overall social inventory of stainless steel ended its previous low-level fluctuations and showed a significant increase. The planned stainless steel production for October is expected to increase further, significantly adding to market destocking pressure. However, against the backdrop of fading macro tailwinds and escalating China-US trade friction, SS futures pulled back sharply during the week, further exacerbating market caution and pessimism. Although it is still the traditional September-October peak season, weak end-user demand in the spot market and continuously declining spot prices led to a further weakening in market transactions, thereby driving the continuous accumulation of stainless steel social inventory. Currently, the market faces multiple challenges: the traditional peak consumption season may end early, supply is increasing, and amid macro disturbances, the market generally holds a cautious wait-and-see attitude with persistently sluggish demand, further increasing destocking pressure. Nonetheless, the current level of stainless steel social inventory remains relatively low for the year. Subsequent attention should focus on changes in steel mills' production schedules and downstream demand conditions.