NPI supply gap, environmental suspension lower stainless steel output by 8.91% in Jan

Published: Feb 15, 2019 11:34
China produced some 1.99 million mt of stainless steel in Jan, down 8.91% on the month and down 8.88% on the year

SHANGHAI, Feb 15 (SMM) – China produced some 1.99 million mt of stainless steel in January, down 8.91% on the month and down 8.88% on the year, weighed by shortages of nickel pig iron (NPI) as raw materials and environmental suspensions, an SMM survey found. 

In January, output of #300 series stainless steel shrank 14.26% from December to 968,000 mt. Expansion of hot-rolled coil production lines across southern mills affected operation of transformers. This, coupled with a short supply of NPI, lowered overall stainless steel output. 

Output of the #400 series decreased 2.07% from a month ago and came in at 425,500 mt for the same month. Operation across producers of the #400 series mostly remained stable. 

A plant producing the #200 series in south China suspended for environmental rectification last month, which lowered overall January output by 4% to 600,000 mt.

For February, output of stainless steel is likely to climb. While CNY maintenance will cut output of the #300 series by 1.42% on the month to 954,300 mt, production of the #200 series is likely to increase by 5.28%, to stand at 631,700 mt. 

Output of #400 stainless steel is expected to dip 4.11% to 408,000 mt in February. 

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NPI supply gap, environmental suspension lower stainless steel output by 8.91% in Jan - Shanghai Metals Market (SMM)