Stainless Steel Prices Linger at Low Levels, Social Inventory Shifts from Rise to Decline [SMM Analysis]

SMM November 20: This week (November 14-20, 2025), the total stainless steel inventory in the Wuxi and Foshan markets showed a slight destocking trend, decreasing from 952,200 mt on November 13, 2025 to 940,000 mt on November 13, representing a 1.28% drop WoW.

This week, social inventory of stainless steel shifted from an increase to a decrease, showing a destocking trend. Despite the current market being in the traditional year-end consumption off-season, with SS futures continuing to decline and repeatedly hitting new lows since 2020, stainless steel spot prices also fell. Influenced by cautious wait-and-see sentiment among downstream end-users, most purchases were only for just-in-time procurement. Under pressure to sell, traders continued to offer discounts, leading to a poor experience for market participants. However, after successive price cuts by steel mills, current stainless steel prices are at relatively low levels, leaving limited further downside room. Additionally, traders actively sold their stocks, and news emerged about production cuts at stainless steel mills; downstream just-in-time procurement and restocking volumes remained at a certain level. Notably, the 200-series stainless steel, which saw significant production cuts, experienced the most pronounced decline in social inventory. During the week, a major mainstream stainless steel mill announced procurement prices for high-carbon ferrochrome and high-grade NPI, with the pressure to drive down prices easing somewhat; further production cuts are expected to narrow. Given the year-end off-season, a significant reduction in stainless steel inventory faces certain challenges.