According to SMM survey, Chinese stainless steel output in February totalled 2.6077 million mt, up 24.57% MoM but down 7.81% YoY. These are productions by product and their changes: 200 series (709,000 mt, +3.2% MoM, -21.57% YoY); 300 series (1.394 million mt, -11.82% MoM, +5.44% YoY); 400 series (504,700 mt, -19.24% MoM, +12.03% YoY). In addition, Indonesian stainless steel production aggregated 425,000 mt in February, up 11.84% MoM and 51.79% YoY.

In February, there was maintenance of some stainless steel mills and production cuts of state-owned ones during the Chinese New Year holiday. Some integrated stainless steel mills switched to production of 200 series whose profits were pushed up by rising prices and stable raw material prices. Moreover, maintenance of steel mills ended. 200 series output in February hiked by 22,000 mt MoM. 300 series stainless steel, the mainstream product of stainless steel mills, saw a 187,000 mt drop from January amid the holiday fallout. Lowering operate rate of domestic state-owned enterprises during the holidays cut 400 series output in February by 120,300 mt MoM.

In March, there will be restart of downstream and terminal sector. According to SMM research, a stainless steel mill in South China received good orders in March. Stainless steel output may increase in March. Indonesian RKAB led to highly volatile nickel raw material prices. Easing of supply tightness due to accelerated quota approval in March and the end of rainy season in Philippines may weaken nickel raw material prices. Therefore, possible cost slip will promote stainless steel production output. Outside China, it is reported that Indonesian stainless steel mills may switch some NPI production lines to high-grade nickel matte production in March, cutting stainless steel output. Domestic stainless steel production may be about 3.2485 million mt in March, up 24.57% MoM. These are estimated productions by product and their MoM changes: 200 series (922,000 mt, +30.04%); 300 series (1.7205 million mt, +23.42%); 400 series (606,000 mt, +20.07%).

Please do not hesitate to contact Jean at jeantang@smm.cn or 86-19946295759 if you have any question or inquiry.