SMM, April 23: Stainless steel social inventory continued destocking this week, with total inventory across the two core markets of Wuxi and Foshan edging down from 961,100 mt on April 16, 2026 to 949,400 mt on April 23, down 1.22% WoW, maintaining a steady destocking pace.
This week, SS futures broke above highs not seen since 2023, boosting market sentiment. Futures-spot arbitrage purchases were relatively active, and stainless steel spot prices rose in tandem. Meanwhile, traders leveraged previously acquired low-cost inventory to offer greater price concessions, continuously shipping out less popular specifications at lower prices. Combined with a small amount of pre-Labour Day holiday stockpiling demand, multiple factors jointly drove further declines in stainless steel social inventory this week. Additionally, steel mill allocation volumes remained at relatively low levels recently, further easing inventory accumulation pressure. As social inventory continued to pull back, traders reported tightening supply of certain specifications. Coupled with SS futures fluctuating at highs, overall market confidence remained strong. Overall, this week's further destocking was primarily driven by active futures-spot arbitrage spurred by stronger SS futures, trader concession-based shipments, modest pre-holiday stockpiling support, and low steel mill allocation volumes. Current market sentiment was positive, with tight supply of certain specifications supporting continued destocking. However, it should be noted that pre-holiday stockpiling demand remained limited in scale, and subsequent steel mill production schedule pace will continue to influence inventory trends. Short-term inventory is expected to maintain a modest destocking trend, with key focus going forward on futures direction, the intensity of pre-holiday stockpiling demand release, and changes in steel mill allocation pace.
