Global stainless steel production rises 2.5% in Q1CY’26, led by Asia

• Chinese production rises 4.3% y-o-y in Q1
• EU’s output shrinks by 5%, US up 2% y-o-y

Global stainless steel melt shop production increased by 2.5% y-o-y to 15.77 million tonnes (mnt) in Q1CY’26, compared with 15.39 mnt in the corresponding period last year, according to the World Stainless Association (WSA). The growth was primarily driven by higher production across Asia, particularly China, while Europe continued to witness output contraction amid challenging market conditions.

Asia continues to dominate global production

Asia remained the largest stainless steel-producing region, accounting for nearly 85% of global output. Regional production increased by 3.3% y-o-y to 13.44 mnt in Q1CY’26 from 13.01 mnt a year ago.

China, the world’s largest stainless steel producer, reported output of 9.84 mnt during the quarter, up 4.3% y-o-y from 9.44 mnt in Q1CY’25. The increase was supported by higher operating rates and steady domestic production despite ongoing pressure from weaker downstream demand.

Europe contracts, US output improves

In contrast, stainless steel production in the European Union declined by 4.6% y-o-y to 1.47 mnt in Q1CY’26 from 1.54 mnt a year earlier. Market participants attributed the decline to weak manufacturing activity, elevated energy costs, and subdued demand across key end-use sectors.

The United States recorded modest growth, with production increasing by 2.3% y-o-y to 566,000 t from 553,000 t in the same period last year.

Meanwhile, production from other regions rose by 6.7% y-o-y to 305,000 t.

Outlook

Global stainless steel production is expected to remain supported by Asia, particularly China, in the coming quarters. However, weak industrial demand in Europe, ongoing trade uncertainties, and fluctuating raw material prices may continue to influence regional production trends and market sentiment.