China's stainless steel market remains sluggish despite signs of recovery in the South

Since the beginning of September, China's domestic stainless steel market has been sluggish, with continued low demand in various product segments such as steel plates, profiles, and pipes. Therefore, the expected demand increase from the typical peak season in September and October has not materialized. Although macroeconomic policies have guided some basic orders, many market participants remain cautious, and most demand is still pending.

Contrary to this general trend, demand for stainless steel in southern China has gradually increased, especially in sectors such as the automotive, new energy, and environmental industries. Stainless steel inventory in Wuxi fell by 1.38 percent on the week to about 611,000 tons. However, despite the stable prices of steel mills, a surplus of resources continues to weigh on the market, leading traders to take a cautious stance amid ongoing uncertainties. Therefore, steel mills may continue to face inventory pressure after the National Day holiday.