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SMM Data: China Stainless Steel Production to Decrease Further in July after Sharp Decline in June
Time:2022-07-11 Source:SMM View:57
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SHANGHAI, July 11 (SMM) – According to SMM survey, the domestic stainless steel output totalled 2.68 million mt in June, a drop of 6.08% month-on-month and 3.55% year-on-year. The output of the 200-series rose 6.32% YoY to 797,000 mt in June, that of the 300-series decreased 9.79% YoY to 1.35 million mt, and that of the 400-series dropped 0.79% YoY to 502,400 mt. In June, the supply decreased as expected. Steel mills took the initiative to destock. Spot stainless steel prices kept falling, while downstream purchases were poor.

In July, although the supply shortages of nickel raw materials continued to ease, and the cost efficiency of raw materials improved, some steel mills remain under big cost pressure as they bought at higher prices earlier.  Given the sharp drop in prices and poor orders, steel mills may reduce production further in July. However, with the recovery of profit margins, the production cut in July may be smaller than expected. The output of stainless steel in July is estimated to fall by 11.98% year-on-year. The output of the 200-series and 300-series is expected to fall 7.76% MoM and 4.73% MoM respectively. The output of the 400-series may rise 3.98% month-on-month.       

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