China’s stainless steel market is showing signs of a rebound, with inventories continuing to decline. Latest data from Wuxi sample warehouses indicate a 6,000-ton drop in total stock compared with the previous period.

Strong gains in futures, closing higher for four consecutive trading days, have lifted spot market sentiment. Bullish momentum is spreading, and downstream demand is gradually picking up, especially as end-of-month orders from distributors rise, easing inventory pressure.

Looking at specific grades, 200-series cold-rolled and hot-rolled stocks are diverging, with cold-rolled inventories achieving three consecutive weeks of drawdown. Supported by firm April futures prices, steel mills are raising 201-series product futures, reflecting growing market confidence.