Stainless steel inventory fell slowly amid sluggish supply and demand [SMM analysis]

As of April 25, the social inventory of stainless steel totalled 914,700 mt, down 0.94% WoW. Specifically, the social inventory of 200-series stainless steel was about 252,900 mt, down 1.04% WoW, that of 300-series stainless steel at about 527,100 mt, up 1.09% WoW, and that of 400-series stainless steel at about 134,600 mt, up 0.18% WoW. The total social inventory decreased by about 3.07% WoW.

200-series: This week, the transactions of 200-series stainless steel in Wuxi and Foshan performed well. The price of #201 stainless steel remained roughly the same after several adjustments by steel mills. The inventory of hot-rolled resources rose slightly, while that of cold-rolled resources was better digested. The overall inventory remained stable. It is expected that the shipment will increase before the Labour Day holiday, and the inventory will rise next week.

300-series: The price of 300-series stainless steel rose sharply and then fell back this week. At the early week, due to significant price hikes, the downstream maintained a wait-and-see stance in the short term. However, as steel mills maintained fewer shipments or future supply to agents, the supply of hot-rolled resources was particularly tight. Their inventory was lower than cold-rolled resources, but the latter inventory slightly fell as traders stocked up. It is expected that after prices stabilise, steel mills may increase shipments and social inventories of 300-series stainless steel will rise during the holidays.

400-series: The 400-series stainless steel arrived normally this week. After the previous purchasing cycle ended, agents and traders faced increasing sales pressure. Combined with falling prices, the inventory in Wuxi remained roughly stable, while that in Foshan increased.

In summary, the overall social inventory of stainless steel fell slowly this week. The sharp rise in prices in a short period of time caused terminal consumers and market speculators to adopt a wait-and-see stance. Controlled shipments from steel mills highlighted tight supply. As the Labour Day holiday approaches, the demand for stocking up before the holiday may lead to an increase in steel mill supply, and inventory is expected to increase before and after the holiday.