China Sees Cuts in Stainless Steel Production after Latest Environmental Drive, SMM Reports

Published: Dec 12, 2016 11:17

Save

What’s impact on domestic producers in the nickel industry from the latest environmental protection inspections?

SHANGHAI, Dec. 12 (SMM) –What’s impact on domestic producers in the nickel industry from the latest environmental protection inspections?

The second round of 7 environmental protection inspection teams arrived in seven regions from November 24 to 30 to supervise environmental protection work, including Beijing, Shanghai, Guangdong, Hubei, Chongqing, Shaanxi and Gansu.

Will New Environmental Protection Inspections Trigger Massive Cuts in China Metals Producers? SMM Reports

SMM learns that Jiangsu Delong Nickel Industry has suspended stainless steel production again due to environmental protection inspections, but maintains high-grade NPI production at present, but the production is going to be suspended.

In November, the company produced 130,000 tonnes of stainless steel, all #300 stainless steel, counting for 12 per cent of China’s total output of the type product. The company needs to purchase 20,000-30,000 tonnes of high-grade NPI each month for its stainless steel production in addition to its own high-grade NPI production. In November, the company also produced around 70,000 tonnes of high-grade NPI.

The suspension of stainless steel production at the company means that demand for high-grade NPI will fall by 20,000-30,000 tonnes, accounting for 6-9 per cent of China’s total output.

Baosteel Group Hikes Steel Prices for January

Moreover, China’s high-grade NPI output will fall in December with output declines at producers in north China due to colder weather and possible cuts at Jiangsu Delong, but any declines will be small.

Hence, stainless steel suspension at Jiangsu Delong will negatively affect high-grade NPI demand in China’s market in December and months ahead.
In other news, stainless steel production at Linyi Jinhaihui Technology is now online, and there is high possibility for the company’s stainless steel production to be suspended. SMM will watch closely to progress of the event.

For news cooperation, please contact us by email: sallyzhang@smm.cn orservice.en@smm.cn.

environmental protection inspections china base metal market environmental drive

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

8 hours ago

[SMM Stainless Steel Flash] Asian Stainless Steel Prices Hold Steady for Third Consecutive Week Amid Quiet Market

Asian stainless steel prices held stable for a third consecutive week, with Chinese Taiwan's export quotes unchanged and Chinese export offers rebounding to steady levels after a brief dip earlier in the month. Raw material trends diverged, LME nickel prices softened while Indonesian NPI gained ground; Chinese domestic ferronickel stabilized and stainless steel futures posted a weekly gain. Trading activity remains quiet during the traditional off-season, though consumption levels are running ahead of the same period last year. A recent Middle East peace accord helped nickel prices bounce back, pointing to a firm short-term market trend.

8 hours ago

11 hours ago

【SMM Flash News】Another Decrease of Indonesia's HMA Nickel in Second Period of June

The Indonesian Ministry of Energy and Mineral Resources (ESDM) has officially released the Nickel Mineral Reference Price (HMA) for the second half of June 2026. The HMA for the second half of June is as follows: the nickel price is $18,642.33 per ton (compared to the first half of June 2026, 18799.29 USD/ton), a decrease of 156.95 USD of 0.83%; the price of cobalt is 55,852.33 US dollars per ton; the HMA of iron ore is 1.58 USD/ton; and the HMA of chrome ore price is 6.37 USD/ton. • Ni 1.2%: USD 49.53/wmt (↓ $0.32) • Ni 1.3%: USD 54.25/wmt (↓ $0.36) • Ni 1.4%: USD 59.52/wmt (↓ $0.48) • Ni 1.5%: USD 64.73/wmt (↓ $0.52) • Ni 1.6%: USD 70.19/wmt (↓ $0.57)

11 hours ago

Jun 18, 2026 18:14

Costs of High-Grade NPI in China Drop as Philippine Ore Arrivals Increase, Profitability Gap Widens

[SMM Nickel Flash] This week, the cost trends of high-grade NPI in and outside China diverged once again, with the profitability gap continuing to widen. The cash cost of high-grade NPI in China extended its downward trend, primarily driven by increased arrivals of Philippine nickel ore and persistently weakening prices, directly reducing smelting’s core raw material costs, while overall production costs pulled back in tandem.

Jun 18, 2026 18:14