[SMM Analysis] Demand Resilience Persists at Tail End of Peak Season, Stainless Steel Social Inventory Continues Destocking On May 21, SMM reported that stainless steel social inventory continued its mild destocking trend this week. Total inventory across the two core markets of Wuxi and Foshan pulled back slightly, dropping from 947,100 mt on May 14, 2026 to 939,200 mt on May 21, down 0.83% WoW, sustaining a mild destocking pattern. Stainless steel market prices were overall in the doldrums this week. Against the backdrop of declining prices, traders generally felt weak market conditions, and wait-and-see sentiment intensified. However, end-use demand demonstrated strong resilience. The market is still at the tail end of the traditional peak consumption season, and downstream end-user just-in-time procurement transactions remained generally stable, without concentrated purchasing halts due to weakening futures or subdued market sentiment, continuously supporting the digestion of market supplies. Meanwhile, steel mill agents proactively cut prices and actively pushed shipments, accelerating the depletion of circulating market supplies. Multiple factors jointly drove stainless steel social inventory to pull back slightly further this week. Overall, sustained release of end-user just-in-time procurement combined with proactive shipments from steel mills jointly dominated the mild destocking trend in inventory this week. Currently, stainless steel mills still maintain reasonable profit margins with strong production willingness, and overall production is expected to stay high, with sustained pressure on the market supply side. As the traditional peak consumption season gradually draws to a close, downstream consumption is about to enter the off-season, and subsequent demand pullback will exert notable pressure on continued inventory destocking. In the short term, inventory is expected to continue its mild destocking trend, but the degree of destocking will most likely slow down gradually. Going forward, close attention should be paid to the sustainability of downstream just-in-time procurement, steel mill production schedules and delivery pace, peak season...

[SMM Analysis: Futures in the Doldrums with Rigid Demand Providing Support, Stainless Steel Social Inventory Saw Mild Destocking] On May 14, SMM reported that stainless steel social inventory continued its mild destocking trend this week. Total inventory across the two core markets of Wuxi and Foshan pulled back slightly, dropping from 955,200 mt on May 7, 2026 to 947,100 mt on May 14, down 0.85% WoW, showing mild destocking characteristics. SS futures were in the doldrums this week. On Thursday, SS futures dropped sharply due to uncertainties surrounding the Fed Chairman transition policy, putting macro sentiment under pressure. However, the spot market showed strong resilience against declines, with stainless steel spot prices falling only narrowly and not following futures to swing wildly. Supply side, steel mills' earlier cargo distribution pace was relatively low, limiting market arrival pressure; traders were cautious in purchasing high-priced cargoes, and speculative purchasing willingness in the market remained weak. Demand side, rigid demand transactions in the market were moderate this week, with end-user rigid demand maintaining a steady pace to pick up goods, largely unaffected by the weak futures performance. Rigid demand resilience supported continued destocking, jointly driving social inventory to pull back slightly this week. Overall, despite futures being under pressure and ongoing macro uncertainties this week, firm spot prices, low steel mill arrivals, and resilient downstream rigid demand collectively drove mild inventory destocking. Currently, the high production schedule pattern at steel mills has not changed, supply-side pressure persists, and futures may maintain wild swings amid the uncertain macro environment. Combined with the traditional peak consumption season gradually...

[SMM SHFE Tin Brief: Warm Macro Sentiment and Weak Trading Volume Offset Each Other, SHFE Tin Retreated after Rapid Rise and Closed at 423,000]

As of April 30, the most-traded SHFE zinc contract closed at 23,645 yuan/mt, up 165 yuan/mt for the month, a gain of 0.7%. Zinc prices rebounded from lows in April, touching a low of 23,430 yuan/mt at the beginning of the month and a high of 24,515 yuan/mt at month-end, though the overall price center pulled back. Heading into May, with the tight domestic ore supply situation persisting, how will zinc prices perform?

[Geopolitical Disruptions Combined with Elevated Inventory Highlight LME Outperforming SHFE in Aluminum Market] Overall, the core pattern of LME outperforming SHFE in the aluminum market is difficult to reverse in the short term. LME strength will support room for SHFE aluminum to catch up after the holiday, but high domestic inventory and weak demand will cap overall gains. Going forward, the focus will be on the pace of aluminum ingot destocking in China and the strength of rigid demand release from downstream resumption of work and production resumptions.

[Geopolitical Tensions Boost LME, China Inventory Buildup and Weakening Demand Under Pressure] In the short term, the core pattern of LME outperforming SHFE in the aluminum market is difficult to reverse. The strength in LME will support room for SHFE aluminum to catch up after the holiday, but high inventory and weak demand in China will suppress overall gains. Going forward, the focus should be on the pace of aluminum ingot destocking in China and the strength of rigid demand release from downstream resumption of work and production resumptions.