Stainless Steel Arrivals Increased During Holiday, Post-Holiday Shipments Rose, Overall Inventory Up 2.17% [SMM Analysis]

As of October 10, SMM social inventory of stainless steel was 990,900 mt, up 2.17% from before the holiday. Among them, the 200-series stainless steel inventory was 286,600 mt, up 1.67% from before the holiday and 1.22% MoM; the 300-series inventory was 562,600 mt, up 2.31% from before the holiday and 3.54% MoM; the 400-series inventory was 141,600 mt, up 2.65% from before the holiday and down 0.21% MoM.

200-series: The 200-series stainless steel had more arrivals before the holiday, with fewer arrivals this week, mainly shipped from south China. After the holiday, the 200-series saw good transactions, with some inventory already pre-sold before the holiday, leading to limited inventory increase. Regionally, Foshan saw a larger inventory build-up, with more hot-rolled stainless steel arrivals than cold-rolled stainless steel.

300-series: The 300-series stainless steel had significant arrivals during the holiday, with substantial shipments from steel mills in east and south China. Arrivals under automobile transport were normal, with similar increases in hot and cold-rolled stainless steel inventory. Wuxi and Foshan faced greater pressure from hot-rolled stainless steel inventory build-up. Although warehouse warrants decreased significantly, many turned into tradable spot resources. Additionally, Indonesian cold-rolled stainless steel arrivals were noted both before and after the holiday. Overall, the 300-series saw the largest inventory increase, but due to a good futures market after the holiday, spot prices improved, leading to better transactions and faster inventory digestion. Wuxi's 300-series inventory increased by 2.79%, while Foshan's increased by 1.62%.

400-series: At the end of the month, state-owned steel mills completed settlements, with some arrivals delayed for post-holiday statistics. Foshan saw a larger inventory increase, while Wuxi's was relatively smaller. After the holiday, the 400-series stainless steel prices rose, shipments increased, and actual inventory pressure was minimal.