SMM Data: China’s Stainless steel Output In August And Forecast For September

SHANGHAI, Sep 12 (SMM) – According SMM survey, stainless steel output totalled 3.217 million mt in August, up 1.66% MoM and 41.18% YoY. The output of 200-series stainless steel was up 1.7% MoM to 956,000 mt, 300-series increased by 3.28% MoM to 1.678 million mt, and 400-series trended up 0.74% MoM to 583,000 mt.

A slack season was extended into early August, and purchase aimed to meet rigid replenishing demand. Delayed issuance of nickel ore quotas and support from raw materials led to booming stainless steel market activity, and stainless steel prices mounted sharply to a high level. In August, total 400-series stainless steel output loss subject to annual maintenance of some steel mills in North China was some 20,000 mt. 200- and 300-series stainless steel saw widening profits and good orders intakes of some steel mills in August and September in East China. In addition, scheduled 25-day-maintenance of some steel mills in South China was postponed from August to November. Under such circumstance, the output of 200- and 300-series stainless steel increased significantly. For the 400 series, a state-owned steel mill in East China increased operating rate of the 400 series in order to achieve the target. In a word, stainless steel production hiked in August.

Overall, September may see high production schedules and high capacity expansion. Steel mills and traders will be upbeat about downstream demand in a peak season. Some steel mills in East China will continue to increase production of 300 series in September, seeking directions from robust demand. Social inventory witnessed moderate demand in August, but will shrink amid tight production schedules and normal delivery for stainless steel. Demand will remain better than previous years. Furthermore, a large steel mill in East China continued to stop selling and limit prices, which appeared bullish for the market outlook. Stainless steel production is expected to increase significantly in September.