Stainless Steel Prices to Fall in Mar amid the High Supply

SHANGHAI, Mar 9 (SMM) - According to SMM survey, Chinese stainless steel output totalled 2.83 million mt in February, up 21.58% MoM and 21.37% YoY. Specifically, the output of 200-series stainless steel added 35.53% from the previous month to 904,000 mt, that of the 300-series gained 16.94% to 1.47 million mt, and that of the 400-series stood at 450,400 mt, up 12.91% MoM.

In February, stainless steel mills that arranged year-end maintenance in January resumed normal production. The production of the 200-series increased greatly owing to the better profits, while that of 300 and 400-series stainless steel resumed to the previous situation.

In March, the stainless steel output may rise slightly. The mainstream 200-series stainless steel mills may produce cautiously, and the output will not grow sharply. In early March, a large stainless steel mill carried out an overhaul due to equipment failure, which has a limited impact on the output. Besides, some stainless steel mills, including some state-owned ones may increase their production to a certain extent. Therefore, the output of 300-series stainless steel in China will grow slightly. In addition, Indonesia also has a certain plan to ramp up stainless steel production. In March, the operating rates of 400-series stainless steel mills will be maintained at the current level, and the output will not grow sharply. The high stainless steel inventory will still curb the prices from a further rise. It is necessary to pay attention to the costs of raw materials and the recovery of terminal demand. To sum up, SMM believes that the prices of stainless steel may fall in March.