[SMM Analysis] The Traditional Peak Season Started Slowly; Stainless Steel Social Inventory Rose Slightly, with Follow-Up Depending on Demand Materialization

Published: Mar 6, 2026 14:26

Save

SMM reported on March 5 that this week, total inventory across the two major stainless steel markets of Wuxi and Foshan showed a slight upward trend, rising from 1.0161 million mt on February 26, 2026 to 1.0164 million mt on March 5, 2026, up 0.3% WoW.

This week, stainless steel social inventory increased slightly, remaining at a high level above 1 million mt. The market had entered the traditional peak consumption season of “Golden March and Silver April.” Although downstream end-users had gradually resumed work and production, the pace of actual demand release was slow, and the strength of the recovery still needed to be verified. SS futures lacked momentum for further upside and fluctuated within the week, making it difficult for spot prices to improve. Wait-and-see sentiment strengthened, and overall confidence pulled back compared with the previous period. Supply side, stainless steel mills’ expected planned production for March had increased significantly, and supply pressure was gradually emerging. Although supply and demand had yet to achieve a good match and the effectiveness of social inventory drawdown remained uncertain, stainless steel currently had strong cost support. Nickel ore-related news continued to ferment and provided a floor, while steel mills were proactive in maintaining prices and boosting shipments, fully aligning with procurement demand after downstream resumption of work, effectively curbing further inventory buildup. Overall, this week’s inventory trend was mainly driven by factors including a slower-than-expected downstream recovery, increased supply expectations, a pullback in market confidence, and steel mills’ active shipments. Although there was still a short-term risk of inventory buildup, supported by strong cost-side support and steel mills’ proactive adjustments, stainless steel social inventory was expected to remain broadly stable. Whether inventories can be effectively drawn down going forward will still hinge on the actual pace of downstream demand recovery.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

Mar 14, 2026 17:27

[SMM Analysis] Tungsten Market Shifts to High-Level Shock; Sentiment Turns Cautious Amid Intensified Supply-Demand Game

SMM March 13: This week, China’s domestic tungsten market exhibited high-level oscillations with intensified supply-demand competition. Multiple mines put products up for auction during the week, but transactions were bleak.As of March 13, tungsten prices remained largely stable, yet market sentiment became extremely divided.

Mar 14, 2026 17:27

Mar 13, 2026 17:49

Titanium Market Structure Becomes Clearer: Upstream Consolidates at Weak Levels, Midstream and Downstream Strength Expected [SMM Titanium Weekly Review]

[SMM Titanium Weekly Review: Titanium Dioxide Showed Signs of Recovery; Diverging Strength Across the Titanium Industry Chain Market This Week] This week, the titanium industry chain in China showed pronounced structural divergence, with the tug-of-war between sellers and buyers across upstream and downstream segments intensifying and cost pass-through facing obstacles. Overall, the sector was characterized by a combination of weak recovery and localized strong support. Trading in upstream titanium ore and titanium slag was sluggish. Downstream processing enterprises tightly controlled costs, with procurement consistently maintained at a pace driven by rigid demand. Coupled with inventory at high levels across the industry, the raw material end remained under pressure, enterprises’ willingness to operate stayed weak, capacity release was constrained, and the supply-demand imbalance continued to stand out. In the midstream titanium dioxide segment, pressure from elevated costs of raw materials and energy sharply increased production-side strain. Enterprises held prices firm and showed a strong willingness to sell, and while domestic trade demand did not see a noticeable increase in volume—relying only on rigid-demand support—overseas markets still demonstrated a certain degree of resilience, leaving the overall market running relatively strong. The downstream sponge titanium and titanium products segments performed impressively: sponge titanium inventories remained low, and, together with robust downstream restocking demand, top-tier enterprises proactively adjusted prices, with enterprises showing strong confidence in holding prices firm. The titanium products market saw stable supply and demand: the supply-side operating rate was steady, while demand-side differentiation was evident. Civilian applications were mainly driven by rigid-demand restocking, while orders in high-end fields such as aerospace and military industries were steady. The market recovered steadily, and differences in the pace across segments of the industry chain also set the tone for subsequent market dynamics.

Mar 13, 2026 17:49

Mar 13, 2026 13:52

Manganese-based Battery Materials: Differentiated Trends, Cost-Supported Stability

This week, China’s domestic manganese-based battery materials market has shown a differentiated operation trend. The price of battery-grade manganese tetroxide has slightly declined, the price of electrolytic manganese dioxide has slightly increased, and lithium manganate has maintained a weak balance of supply and demand.

Mar 13, 2026 13:52