SHANGHAI, Dec 17 (SMM) - The output of stainless steel has increased since November as the power rationing has been eased. However, downstream producers’ consumption thinned, suppressing stainless steel prices. Stainless steel mills suffered losses as prices of raw material like ferrochrome and NPI were at high levels, in spite of correction. Especially, #200-series stainless steel prices have declined 2,900 yuan/mt or 22.3% since early November.

Baosteel Desheng, Huale Alloy, Beijing New Materials and other 3 steel mills issued an initiative to jointly maintain the order of the #200-series products and standardise market behaviour, adjust the supply of #200-series products in the market, and reduce production capacity. The supply is likely to be cut 30-60% by March 2022.
Stainless steel prices have rebounded in the past two days due to the production cut plan of mills which will reduce their demand for ferrochrome among other raw materials. The output of ferrochrome in November hit a record high, and remains high. The oversupply scenario is gradually emerging. Although plants still have long-term contracts recently, the difficulty of retail shipments is gradually increasing. In the future, plants are likely to reduce prices to sell products.