- 300 series records largest absolute decline
- Stainless production remains mixed across grades
China’s stainless steel crude steel production declined by 6.55% m-o-m to 3.496 mnt in September, although output remained 2.03% higher y-o-y.
Production across the 200, 300 and 400 series declined during the month, with the 300 series recording the largest absolute reduction. In October, overall stainless steel production is expected to recover moderately, driven by higher output from the 200 and 400 series. However, production of the 300 series is projected to decline further.
September production declines across grades
China’s stainless steel crude production was estimated at 3.4962 mnt in September, down 6.55% m-o-m but up 2.03% y-o-y.
By grade, 200-series production stood at 1.0232 mnt, down 4.13% m-o-m and 1.52% y-o-y.
Production of the 300 series declined 6.22% m-o-m to 1.8602 mnt, although it remained 5.53% higher y-o-y. The monthly decline amounted to around 123,000 t, making the 300 series the largest contributor to the overall production reduction.
Meanwhile, 400-series production fell 11.25% m-o-m to 612,800 t and was down 1.95% y-o-y.
October production expected to recover
China’s stainless steel crude production is planned at around 3.5532 mnt in October, up 1.63% m-o-m and 1.12% y-o-y. This represents an increase of approximately 57,000 t from September.
The recovery is expected to be driven mainly by higher production of the 200 and 400 series.
The 200 series is planned at 1.1084 mnt in October, up 8.33% m-o-m and 5.16% y-o-y. Meanwhile, 400-series production is projected at 631,000 t, up 2.97% m-o-m.
In contrast, 300-series production is projected at 1.8138 mnt, down 2.49% m-o-m. This follows a 6.22% decline in September and represents an additional production cut of around 46,400 t in October.
Outlook
China’s stainless steel production is expected to recover moderately in October, but the recovery remains uneven across grades. Higher output from the 200 and 400 series is likely to offset part of the decline in the 300 series.
The continued reduction in 300-series production could provide some support to the supply-demand balance for austenitic stainless steel, although the overall market impact will depend on downstream demand and actual production levels during the month.
Note: This article is published as part of a content exchange agreement between Japan Metal Daily and BigMint.
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