SHANGHAI, Aug 10 (SMM) - According to SMM survey, the domestic stainless steel output in July totalled about 2.3705 million mt, down 273,800 mt or 10.35% MoM and 18.76% YoY. The output of 200 series stainless steel stood at 651,000 mt, down 25.68% YoY; 300 series 1.3199 million mt, down 14.29% YoY; 400 series 399,600 mt, down 20.4% YoY.

In July, the output of series 2, 3, and 4 stainless steel decreased compared with June. The output of 2, 4 series stainless steel decreased more significantly as steel mills tended to produce series 3 stainless steel due to the poor profits of series 2 and 4 stainless steel. Although steel mills chose to digest the inventory in June, the overall decline of inventory was less than expected. In the first half of July, the prices further decline and the losses expanded. Therefore, many steel mills had to reduce the production to reduce the losses. In August, the output of 300 series stainless steel is expected to pick up. However, the output of series 2 and 4 series stainless steel is unlikely to resume significantly due to weak consumption. Moreover, as the decline in inventory is less than expected, steel mills will further reduce the production. In terms of demand, although the consumption is expected to resume in August, it may not be able to recover significantly. Due to the high temperature, the operating rates and restocking pace of downstream enterprises will be affected, but overall demand will still be better than July. . Among them, the output of 200 series stainless steel in August will fall by 1.84% on the month while the output of 300 series stainless steel is expected to increase by 7%. The output of 400 series stainless steel is expected to fall by 11.39% on the month. Therefore, on the whole, the overall supply and demand of stainless steel will both increase slightly. SMM expects that the prices of stainless steel will decline slightly in August amid cost support.

SMM national stainless steel output statistical samples includes Dingxin Industry, Tsingtuo Nickel Industry, Qingtuo Industrial, Tsingshan Group, Guangqing, Beibu Gulf New Materials(Beihai Chengde), 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, Jiangsu Delong, 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, Friendship Special Steel, Taizhou Huadi, Ningbo Dongmeng, Jiangxi Shengda and Ningbo Yiyue, totaled 35.