Main factors of a large drop in stock
1. Limited arrivals
From the feedback of market traders, many early signed orders have not yet arrived. Most of the resources are still on the way. In addition, due to the weak performance of the stainless steel market, the order volume is also decreasing, which has a limited market impact.
2. The demand is slowly warming
With the coming of gold in March, the downstream market of stainless steel began to run gradually, and the demand for stainless steel rose gently and consumed a certain amount of resources.
3. Merchants take the initiative to clear inventory
Due to the continued sluggish performance of stainless steel, merchants try to avoid the risk of price fall, most of them are actively shipping down the stock. In addition, near the end of the month, in order to recover funds, businesses speed up the sales frequency, which led to a significant decline in inventory.
Through the inventory data, compared with the previous period decreased obviously, but from the historical data, still at high levels. Compared with the lowest point of 148,500 tons in 2017, it still increases by up to 89,200 tons, which is only a slight decline of 8,300 tons compared with the peak of late March 2017. Short-term inventory pressure remains.
With stainless steel entering the demand season, the downstream operating rate has gradually increased, and inventory has been actively cleared. It is expected that inventory will continue to decline in the next period.