Pre-Holiday Arrivals Gradually Increase, Post-Holiday May See Partial Inventory Buildup [SMM Analysis]

As the Chinese New Year holiday approaches, stainless steel electronic trading prices fluctuated rangebound this week, while spot prices remained stable. As of January 23, SMM Wuxi region's 304 cold-rolled coil prices were quoted at 13,000-13,300 yuan/mt, with an average price up 80 yuan/mt WoW. Hot-rolled prices were at 12,400-12,600 yuan/mt, with an average price up 40 yuan/mt WoW.

In terms of supply, stainless steel social inventory increased 1.02% WoW this week. Specifically, Wuxi region's 200-series inventory rose 0.86% WoW, with limited market impact; 300-series rose 1.58%, and 400-series fell 1.04%. In Foshan region, 200-series rose 0.88%, 300-series rose 1.76%, and 400-series fell 0.91%.

Demand side, as the holiday approaches, market transactions remained sluggish, shipments stayed at low levels, but 400-series maintained stable outflows from warehouses. Overall, pre-holiday arrivals gradually increased, coupled with off-season demand remaining low in winter, the stainless steel market is expected to see some inventory buildup after the holiday.

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