Exclusive: Stainless steel output rose 2.56% MoM in July, and to remain high in August

SHANGHAI, Aug 7 (SMM) — Stainless steel output continued to increase in July, hitting a new year high.

China produced 2.62 million mt of stainless steel in July, up 2.56% or 65,000 mt from June and 3.57% from a year ago, an SMM survey showed.

Output of #300 stainless steel expanded 61,900 mt on month to 1.36 million mt in July, as two leading steel makers raised output. In addition, Yunnan Tiangao steel mill restarted production, increasing output of the #300 series by 15,000 mt. #400 stainless steel output shrank 20,600 mt or 4.7% from June to 418,000 mt in July as Fuxin Special Steel and TISCO undertook maintenance. Output of the #200 series rose 2.57% to 838,000 mt.

SMM expects stainless steel output to rise to 2.64 million mt in August, with 1.36 million mt of the #300 series. Spot stainless steel prices strengthened recently amid tight market supply and surging stainless steel futures prices. Some mills will restore production in August after maintenance.