[SMM Analysis] Futures Market Weakness Coupled with Sluggish Off-Season Demand, Limited Arrivals Saw Stainless Steel Inventory Post a Slight Buildup and Hold Steady

SMM, August 13: This week, stainless steel social inventory shifted from prior destocking to a slight buildup, with the overall inventory center basically stable and off-season inventory pressure rising marginally. Total inventory in the two core markets of Wuxi and Foshan edged up from 915,200 mt on August 6, 2026 to 915,900 mt at the latest period, up 0.08% WoW. The buildup was narrow, and overall inventory remained on a stable trend.

This week, the stainless steel market continued its traditional off-season pattern. There was still no early signal of recovery for the September-October peak season, and end-use rigid demand remained weak. During the week, SS futures pulled back repeatedly, wait-and-see sentiment among traders and downstream players strengthened, and downstream end-users mostly maintained a hand-to-mouth purchasing mode. Spot transactions in the market were overall weak, and cargo destocking efficiency was low, creating the core fundamental pressure for inventory buildup. On the supply circulation side, there were temporary offsetting factors. At the start of this week, Typhoon "Dolphin" disrupted logistics deliveries and spot arrival pace in east China, slowing market supply replenishment and effectively offsetting the inventory buildup increment from weak demand. As a result, this week’s social inventory only edged up and stayed basically stable overall.

Overall, sluggish off-season end-use demand and weakening futures that dragged on market transactions were the core causes of this week’s slight inventory buildup, while typhoon disruptions reduced arrivals and effectively suppressed sharp inventory accumulation, ultimately showing a trend of slight accumulation and stability. At present, stainless steel’s off-season fundamentals still dominate the market, end-use demand shows no signs of recovery, and the market trading atmosphere remains subdued. Meanwhile, steel mill production schedules for August continued to rise, and industry supply was steadily released. With demand not yet recovered in this mismatch, subsequent market inventory accumulation pressure will gradually become more prominent, and inventory will likely continue a mild buildup trend.