China’s Stainless Steel Output Dropped to a New Low within the Year in Sep

SHANGHAI, Oct 12 (SMM) – According to SMM survey, the domestic stainless steel output totalled 2.22 million mt in September, a drop of 590,000 mt or 20.97% month on month, and down 19.75% year on year.

China’s output of stainless steel totalled 24.78 million mt from January to September, an increase of 17.1% year on year.

The dual control policy of energy consumption was strengthened in Guangdong and Jiangsu, and the stainless steel production was severely restricted. The overall operating rate fell from 93% in August to 73.7%. The output of the 200 and 300-series products dropped significantly. The 200-series output dropped by 258,200 mt to 575,000 mt on the month, a decrease of about 31%, and the 300-series output fell by 295,000 mt to a new low since February at 1.18 million mt. The output of the 400-series products fell slightly by 37,300 mt to 471,000 mt on the month.

The production in Jiangsu gradually recovers in October amid the easing power rationing, and the operating rates may rebound. However, the operating rates in Fujian and Guangdong are expected to drop further under the strict restrictions.

The stainless steel output is expected to keep falling to 2.19 million mt in October. The 300-series output is likely to drop by 16,000 mt to 1.16 million mt, the 200-series output to be 589,000 mt, and the 400-series output to be 443,000 mt.