Chinese stainless steel futures dipped toward four-month lows in August. This downward movement was due to loosened mill pricing limits and pessimistic sentiment, compounded by stagnant terminal demand during the traditional slow season.
Fundamentally, supply and inventory pressures remain prominent. Stainless crude steel production in August among major producers is expected to rise by 3.11% to 3.69 million tons, with the 300-series increasing by 7.41% to 1.98 million tons due to post-maintenance restarts. Meanwhile, Wuxi inventory levels climbed toward yearly highs as previously ordered shipments arrived.
As the traditional September-October peak season approaches, market participants await actual downstream restocking and order realization. While stable raw material costs provide underlying support, unmet demand recovery could risk further price slides.