The steel mills have taken active measures to control production and offer discounts for delivery, which has led to the continuous reduction of the accumulated inventory within the factories. As a result, the supply-side pressure of Chinese 316L stainless steel plate manufacturers has marginally eased. Both the social inventory and the factory inventory are being depleted in both directions. However, the inventory reduction is a result of "replacing quantity with price", rather than a sudden surge in demand. Once the price stops falling, the purchasing intention will immediately decline. The demand of Chinese 316L stainless steel plate manufacturers lacks internal support. The inventory has dropped across the board but the steel price has not risen but fallen instead. This is the most core feature of the Chinese 316L stainless steel plate market this week.

In the short term, the spot market of Chinese 316L stainless steel plate manufacturers still maintains a weak and fluctuating pattern. The demand lacks the basis for continuous volume growth. The trading merchants of Chinese 316L stainless steel plate manufacturers have not lost their intention to clear the inventory, and the price is prone to fall rather than rise. The leading decline in the coastal markets such as Shanghai and the following decline in the inland markets such as Wuxi are difficult to fundamentally change in the short term.

In the medium term, if the inventory continues to be reduced at the current pace, the transaction volume of Chinese 316L stainless steel plate manufacturers will not further weaken significantly. The continuous low inventory state will gradually offset some pessimistic expectations, and the decline space is expected to narrow. There is a possibility of a slight stabilization. However, before the terminal demand shows a substantive recovery, the rebound momentum of the price of Chinese 316L stainless steel plate manufacturers is still insufficient.