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China’s Stainless Steel Market Firms as Inventories Decline
2026-07-20 16:03:45
Dagu Metal Materials
China’s stainless steel market showed signs of improvement in mid-July, with lower inventories and firmer nickel prices providing support to both futures and spot prices. However, trading activity remained mixed as the market continued through the traditional summer off-season.
During the week of July 13–17, stainless steel futures recovered noticeably. The most-traded contract closed at RMB 14,795 per tonne on July 17, up RMB 450 per tonne from the previous Friday. The rebound was supported partly by stronger market sentiment and continued concerns over nickel ore supply in Indonesia.
Nickel also provided stronger cost support. LME nickel closed at around USD 16,961 per tonne on July 17, approximately 1.3% higher over the week. Changes in nickel prices remain an important factor for austenitic stainless steel grades, particularly the 300 series.
One of the more notable developments was the decline in stainless steel inventories. Market data showed that inventories across 89 major warehouses fell by about 3.1% week on week to approximately 1.09 million tonnes. Inventories of 300-series stainless steel declined by nearly 4%, indicating that material was moving out of warehouses at a faster pace than in the previous week.
The materials involved in the expansion are commonly used in petrochemical equipment, energy projects, environmental protection equipment and machinery manufacturing. These applications often place different demands on corrosion resistance, mechanical strength and high-temperature performance. Material grade, product form and subsequent processing therefore need to be considered together rather than separately.
The latest expansion marks another step in the development of Dagu Metal's material and processing business. With a broader product range and additional processing support, the company is building a more complete supply structure around stainless steel and specialty alloy materials. Further improvements to material management, processing coordination and quality control are planned as the business develops.
