The effect of supply shrinkage of stainless steel factories shows that rising prices drive down inventories [SMM analysis]

As of April 18, the total social inventory of stainless steel was about 923,400 tons, a week-on-week increase of 1.54%. Among them, the social inventory of 200 series stainless steel was about 255,600 tons, a decrease of about 0.85% from last week's inventory, the social inventory of 300 series stainless steel was about 532,900 tons, a weekly decrease of about 2.06%, and the social inventory of 400 series stainless steel was about 134,900 tons, a weekly decrease of about 0.77%, and the total social inventory was about -4.36% month-on-month.

200 series: this week, the supply and demand of 200 series stainless steel is relatively stable, the amount of warehousing after the end of this month's centralized arrival, this week's 201 cold-rolled coil price by the 300 series of transactions boosted by a slight increase, the downstream buying sentiment improved, social inventory turned to digest, and hot-rolled resources digested better.

300 series: this week 300 series stainless steel to the warehouse is good, the supply side of the current 304 stainless steel mainstream steel mill market are discounted, the number of agents to report the amount of approval has decreased sharply, before the stainless steel market weak agents and traders have maintained low inventory, and stainless steel supply shrinkage and boosted by macro factors, prices have risen all the way, the market replenishment of goods sentiment is strong, and the social inventory in Xifo and Sifo has declined significantly.

400 series: The downstream demand of 400 series is relatively stable, and the downstream procurement has weakened cyclically recently, the inventory in Foshan has accumulated slightly, and the social inventory in Wuxi has gone to the warehouse normally. To sum up, the downstream demand for stainless steel has picked up since late March, the transaction has improved, the social inventory level has begun to continue to decline, and the current social inventory is higher than the same period in previous years, due to the accumulation of high warehouse receipts, the actual tradable resources in the market are at a normal level, and the 300 series of steel mills are tight after the discount, the current transaction is mostly bullish among traders, the actual consumption remains at a normal level, and the volume of transactions and pick-ups will be reduced after the market sentiment cools down.