- 300-series sees steepest decline among all segments
- Inventory rises for second consecutive week across markets
China’s stainless crude steel production stood at 9.20 mnt in Q1CY’26, down 3.4% y-o-y from 9.52 mnt last year, despite a sharp recovery in March supported by post-Lunar New Year operational normalisation. Output across all major series declined, with 300-series falling 5.3% to 4.85 mnt, while 200-series and 400-series dropped marginally to 2.61 mnt and 1.74 mnt, respectively.
March rebound driven by seasonal recovery
March production rose to around 3.5 mnt, up 28% m-o-m, as mills ramped up operations. However, improved output outpaced demand recovery.
Inventory pressure weighs on sentiment
Market absorption remained weak, with inventories rising for the second consecutive week, led by hot-rolled accumulation. Subdued buying interest ahead of the Qingming festival further limited offtake.
Outlook
Production is expected to ease slightly to ~3.68 mnt in April, as mills adjust output amid rising inventories and slower demand recovery.
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