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China’s Stainless Steel Market Sees Limited Inventory Decline After National Day Holiday
2025-10-10 14:25:03
Dagu Metal Materials
China’s stainless steel market returned from the National Day and Mid-Autumn Festival holiday with inventories slightly lower, while downstream purchasing remained cautious in the first days after trading resumed.
According to market data, combined stainless steel inventories in Wuxi and Foshan stood at approximately 905,600 tonnes on October 9, compared with about 909,000 tonnes before the holiday. The decline was relatively small, but inventories remained at a comparatively low level for the year.
The change in inventory was influenced by several factors before and during the holiday. Some downstream users completed purchases and collected material in advance, while heavy rain and typhoon conditions in southern China affected transportation and warehouse arrivals. Trading activity also slowed significantly during the holiday period.
After the holiday, stainless steel futures initially moved higher along with the broader metals market. However, physical market demand remained relatively cautious, with buyers paying close attention to price movements before placing new orders.
The 300-series stainless steel market continued to attract particular attention because of changes in raw material costs and downstream demand. Nickel and ferrochrome remained important cost factors for stainless steel producers, while relatively loose supply and weaker downstream consumption continued to limit stronger price movements in China.
In Wuxi, one of China’s major stainless steel trading centers, prices for commonly used grades showed mixed movement around the holiday period. Market data for the period around October 10 showed some pressure on 304 products, while 316L recorded a more noticeable decline in average prices.
For the remainder of October, the market is expected to continue watching the balance between mill supply and the recovery of downstream demand. Inventory levels, nickel-related raw material costs and purchasing activity from manufacturing sectors are likely to remain key factors affecting stainless steel prices.
The post-holiday market has therefore started on a relatively cautious note. Although inventories have not shown significant pressure, a stronger recovery in actual consumption will be needed before the market sees a clearer direction.
