Stainless steel output expands 3.9% in Sep

SHANGHAI, Oct 16 (SMM) – China produced 2.16 million mt of stainless steel in September, up 3.9% from August and 1.6% from September 2017, SMM data showed.

Output in January-September stood at 17.81 million mt, some 0.8% lower than the same period last year.

A mill in central China resumed operation from a facility breakdown and this raised output of the #200 series by 7.3% to stand at 588,000 mt.

While some mills in the north and east undertook maintenance, output of the #300 series still increased by 4% on the month and came in at 1.184 million mt as some mills in the south, east and north stepped up production. A mill in south China that was designed to produce #400 series products switched to producing #300 series products, to chase higher profits. In September, this mill produced 70,000 mt of #300 stainless steels products and 15,000 mt of #400 series products.

Overall output of the #400 series stood at 388,000 mt in September, up 3.4% from August.

SMM expects output of stainless steel is expected to rise to 2.26 million mt in October. Output of the #200 series is likely to drop to 566,000 mt as a large mill in the south suspend production of #200 series products in the middle of October and switch to carbon steel production. Output of #300 and #400 stainless steel products is likely to advance to 1.27 million mt and 401,000 mt, respectively, in October.