Concentrated Inventory Buildup at the Beginning of the Month Gradually Digested, Stainless Steel Social Inventory Drops Back Slightly [SMM Analysis]

SMM October 23, according to the news, this week (October 17-23, 2025), the total inventory of the two major stainless steel markets in Wuxi and Foshan showed a slight destocking trend, increasing from 952,600 mt on October 16, 2025 to 946,400 mt on October 16, representing a WoW decrease of 0.65%.

This week, social inventory of stainless steel showed a slight downward trend. Affected by the National Day holiday and the concentrated arrivals of post-holiday orders, inventory once accumulated rapidly. However, with the gradual progress of cargo pick-up recently, coupled with the overall strength in ferrous metals futures, SS futures gradually emerged from previous lows and showed a steady upward trend, effectively boosting market confidence and increasing inquiry volume. In addition, traders actively shipping goods also played a positive role, collectively contributing to a slight pullback in stainless steel social inventory this week. Nevertheless, the traditional peak season of "September-October peak season" was not as robust as expected, and as the traditional off-season approaches, downstream demand is likely to weaken further. However, stainless steel mills' planned production for the month is still expected to remain high, increasing market digestion pressure. Combined with the current strong uncertainty in the macro environment, downstream sectors mostly opt for just-in-time procurement, and stainless steel inventory is expected to be difficult to decrease significantly.