The Overall Output of Steel Mills Decreased Sharply due to the Raw Material Shortage and Other Aspects

Published: May 9, 2022 17:04
Source: SMM
In April, due to the shortage of imported nickel raw materials, the high cost amid the extreme LME nickel, the limited transportation under the pandemic situation, and the goods backlog of steel mills, most steel mills stopped production or switched from 3 series to 2.4 series, and the overall output of steel mills decreased sharply.

SHANGHAI, May 9 (SMM) - In April, due to the shortage of imported nickel raw materials, the high cost amid the extreme LME nickel, the limited transportation under the pandemic situation, and the goods backlog of steel mills, most steel mills stopped production or switched from 3 series to 2.4 series, and the overall output of steel mills decreased sharply. Due to the high imported nickel raw material prices, some steel mills have transferred their demand to the stainless steel scrap, so the supply of stainless steel scrap was relatively limited, which also limited the production of some steel mills with a high proportion of steel scrap in the south. Therefore, the output in April decreased significantly compared with that in March. In April, the output of stainless steel was basically the same as that of the previous year, with a decrease of 1% YoY. In May, SMM expects the overall output may still decline slightly compared with April. Among them, the ferrochrome prices increased due to the shortage of imported nickel raw materials, the pandemic situation, and the flood in South Africa. As a result, the series 2.4 profits of some steel mills have also been squeezed or even were negative and there was a certain reduction in series 2.4 in May. While the output of series 3 stainless steel remained basically the same as that in April. 200 series stainless steel decreased by 4.35% and 400 series stainless steel decreased by 7.5%. SMM national stainless steel output statistical samples includes Dingxin Industry, Tsingtuo Nickel Industry, Qingtuo Industrial, Tsingshan Group, Guangqing, Beigang New Material, TISCO Stainless Steel, Zhangjiagang Pohang, Ansteel, Jiugang and Taishan Steel Group, Jiangsu Delong (including Danan project + Xiangshui phase II), Eastern Special Steel, Xinjinhui Stainless Steel Industry, Baosteel Desheng, Fujian Wuhang Stainless Steel Products, Fuxin Special Steel, Inner Mongolia Shangtai Industry, Yantai Walsin Lihwa, Huale Alloy, Yongxing Materials, Shandong Shengyang, Guangxi Jinhai, Liuzhou Steel Zhongjin, Guangxi Yongda Steel, Guangxi Xinfeng, Wolaidi Metal Material, Shenyuan Special Steel, Sichuan Gangchen, Friendship Special Steel, Taizhou Huadi, Ningbo Dongmeng, Jiangxi Shengda and Ningbo Yiyue, totaled 35.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Sep 3, 2026 19:00
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Read More
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
Japanese Yen Increases USD/JPY Drops Below 159 Amid Intervention Speculation
[SMM Precious Metal Express] The Japanese yen spiked sharply during Wednesday's trading, with USD/JPY falling below 159 and closing down 0.92% at 158.69, sparking speculation of Japanese currency intervention. The dollar index also dropped sharply, with a weaker dollar environment providing support for precious metals.
Sep 3, 2026 19:00
Wuhu Approves Environmental Impact Assessment for Anhui Motu's 500,000 kVAh Lead-Carbon Battery Project
Aug 26, 2026 17:02
Wuhu Approves Environmental Impact Assessment for Anhui Motu's 500,000 kVAh Lead-Carbon Battery Project
Read More
Wuhu Approves Environmental Impact Assessment for Anhui Motu's 500,000 kVAh Lead-Carbon Battery Project
Wuhu Approves Environmental Impact Assessment for Anhui Motu's 500,000 kVAh Lead-Carbon Battery Project
[Lead-Acid Battery Enterprise Dynamics] Recently, the Wuhu Municipal Bureau of Ecology and Environment issued an approval opinion, and the environmental impact assessment for the annual production of 500,000 kVAh lead-carbon battery assembly project of Anhui Motu Technology Group Co., Ltd. was officially approved. The enterprise will implement various environmental protection measures in accordance with the requirements of the environmental impact assessment approval, advance subsequent preliminary work, and start the project construction after all conditions are ready.
Aug 26, 2026 17:02
PBoC Announces Overnight Reverse Repo and MLF Operations, Boosting Precious Metals Valuations
Aug 25, 2026 11:32
PBoC Announces Overnight Reverse Repo and MLF Operations, Boosting Precious Metals Valuations
Read More
PBoC Announces Overnight Reverse Repo and MLF Operations, Boosting Precious Metals Valuations
PBoC Announces Overnight Reverse Repo and MLF Operations, Boosting Precious Metals Valuations
[SMM Precious Metal Express] The PBoC announced it will conduct overnight reverse repo operations from August 27 to September 1, with daily volume not exceeding RMB 600 billion, and will conduct RMB 500 billion in one-year MLF operations on August 25. The accommodative liquidity environment supports precious metals valuations.
Aug 25, 2026 11:32
The Overall Output of Steel Mills Decreased Sharply due to the Raw Material Shortage and Other Aspects - Shanghai Metals Market (SMM)