Stainless Steel Plant Shipments Decline Slightly, Inventory Down 0.8% This Week [SMM Analysis]

As of August 15, SMM's total social inventory of stainless steel was 973,000 mt, down 1.41% MoM and 0.8% WoW. Among them, the inventory of 200 series stainless steel was 278,800 mt, down 0.67% WoW; the inventory of 300 series was 553,200 mt, down 0.8% WoW and 2.3% MoM; the inventory of 400 series was 140,900 mt, down 1.1% WoW and 1.92% MoM.

200 Series: This week, the total shipment volume of the 200 series from Fujian slightly declined, but prices remained low. Downstream buyers were strongly inclined to buy on dips, leading to weak digestion of the 200 series. Previous inventories still accumulated significantly, with a slight inventory build-up in Wuxi this week. In Wuxi, the cold-rolled inventory of the 200 series increased by 0.44%, hot-rolled inventory increased by 2.01%, and the overall inventory build-up was 0.1%, remaining basically flat. In Foshan, due to price drops, some end-users released procurement demand, leading to an overall inventory reduction of 1.16%.

300 Series: This week, the spot price of the 300 series continued to decline, with downstream buyers adopting a wait-and-see attitude. However, traders were actively bottom-fishing, and the total shipment volume from Fujian to Wuxi was relatively small, with only a few small ships arriving. The cold-rolled inventory in Wuxi decreased by 0.92% WoW. In east China, the supply of hot-rolled products slightly increased, with a weekly inventory build-up of 1.21%. In Foshan, low-priced warrants and some specifications of cold-rolled spot products were well digested, leading to an overall inventory reduction of 1.76%.

400 Series: Recently, the price of the 400 series has been relatively stable, and downstream routine procurement has led to some inventory digestion. However, state-owned steel mills have a large amount of in-transit resources with concentrated arrivals expected next week, which may lead to inventory build-up. This week, the inventory in Wuxi decreased by 1.44, while Foshan saw a significant arrival of cold-rolled products, leading to a slight overall inventory reduction of 0.29%.