BEIJING, Dec. 15 --It is learned that Shanxi TISCO Stainless Steel-the largest stainless steel maker in China reduced production about 40,000 tons or 19% in November, while Baosteel intended to cut output by 30% in December. The reduction of both companies stemmed from the equipment overhaul rather than market factors.
Insiders of TISCO said that the company had a production of about 170,000 tons in November. Just as the previous report, the yield was at 210,000 tons in October. He said that the reduction is due to the overhaul of some equipments, added the production in December may be higher than that in November.
Baosteel Stainless Steel' s production was still up to 105,000 tons in November, up 100,000 tons from that in October. However, as the mill should stop production to overhaul in mid-December, the production may slump about 30% in December.
Qingdao Pohang Stainless Steel, CRC stainless steel manufacturer kept production relatively stable. The production stood at 14,000 tons in November, which was in line with that in October, but the production may climb to 15,000 tons in December.
Officials of the several stainless steel mills said that as the market demand has not improved apparently now, they mostly estimated that the market is usually gloomy in December. However, market observers took positive attitude, believed that steel mills' reduction can bolster stainless steel and may restrain domestic stainless steel price to fall further.