Stainless steel producers might still face inventory pressure after National Day holiday
Time:Wed, 02 Oct 2024 20:00:10 +0800
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The outlook for China's domestic stainless steel market has been bleak since early September, marked by low sentiment across various sectors, including plates, profiles, pipes, and wires. The anticipated boost from the peak consumption season, September and October, has failed to materialize, and trader enthusiasm remained low during the Mid-Autumn holiday. While some essential orders are beginning to emerge due to policy and macroeconomic factors, many remain cautious and on hold.
Despite these challenges, demand for stainless steel in South China is steadily increasing, particularly in the automotive, new energy, and environmental sectors. In Wuxi, total stainless steel inventory decreased to about 611,000 tons, down by 1.38% over the week. Although steel mills are maintaining stable prices, a surplus of resources persists, and traders are adopting a cautious approach amid ongoing market uncertainties. Overall, the steel mill may still face inventory pressure after the National Day holiday.
