Stainless Steel Inventory in Foshan Increases After Three Consecutive Decreases

After experiencing a three-week decline, the stainless steel inventory in Foshan has seen an increase, with the 300 series cold rolling up by 2.72%.

Comprehensive Analysis

200 Series: In terms of cold rolling, a significant reduction is observed in Beigang New Materials, followed by Foshan Chengde and Hongwang. For hot rolling, the reduction is evident in Dingxin and Beigang New Materials, with other origins showing limited changes.

300 Series: For cold rolling, the increase is seen in Delong, Yongjin, Shangke, and Hongwang, with the latest production dates mostly concentrated around June 25th to 27th. For hot rolling, despite a decrease in Beigang New Materials, the overall increase is due to the higher increments from Dingxin and Xinfeng.

400 Series: In cold rolling, reductions are noted in Qingtuo Shangke and Ruisteel; for hot rolling, the reduction is in Qingtuo Shangke, with other origins showing limited changes.

Reasons for the Increase

Our analysis indicates that 300 series cold rolling accounts for 39.26% of the total inventory. More than 73.21% of the 300 series cold rolling in our sample inventory is 304 wide cold rolling, hence our focus on the 300 series for this analysis:

Analysis 1: The resource structure shows that within the current week, new resources have arrived at the warehouses of Delong, Yongjin, Qingtuo, and Hongwang. However, due to strong market conditions and clear demand, the overall inventory increase is very limited.

Analysis 2: The flood season has caused some delays in shipments, which may have slightly affected the data for last week and this week.

Analysis 3: There have been rotational power outages for maintenance in the Chencun Industrial Zone and the professional market, affecting the speed of shipments.

Analysis 4: There are some rumors about exports that may have caused some resistance to shipments from certain groups.

Inventory Data

The sample inventory data was collected on July 2nd for cold rolling and July 3rd for hot rolling. Note that the sample warehouse inventory does not include delivery warehouse inventory.

This week's total sample inventory is 374,700 tons, a decrease of 6,400 tons (1.69%) from last week. Specifically:

• 200 Series inventory has decreased to 136,700 tons, a decrease of 9,200 tons (6.28%) from last week.
• 300 Series inventory has increased to 200,900 tons, an increase of 4,600 tons (2.37%) from last week.
• 400 Series inventory has decreased to 37,000 tons, a decrease of 1,900 tons (4.94%) from last week.