A major stainless steel mill in China’s Jiangsu province has been asked to reduce production by up to 30% by end-2021 after receiving a “production cut” order from the government. China is bent on reducing steel output in 2021, and if the drawdown policy persists disturbance may erupt in the stainless steel market in the term short term thereby supporting prices as well as prices of raw materials such as nickel and ferro chrome. The stainless steel major will need to cut the output of the 300 series between 120kt and 150 kt, according to information from sources.
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