According to SMM
survey, the domestic stainless steel output totalled 2.68 million mt in June, a
drop of 6.08% month-on-month and 3.55% year-on-year. The output of the
200-series rose 6.32% YoY to 797,000 mt in June, that of the 300-series
decreased 9.79% YoY to 1.35 million mt, and that of the 400-series dropped
0.79% YoY to 502,400 mt. In June, the supply decreased as expected. Steel mills
took the initiative to destock. Spot stainless steel prices kept falling, while
downstream purchases were poor.
In July, although
the supply shortages of nickel raw materials continued to ease, and the cost
efficiency of raw materials improved, some steel mills remain under big cost
pressure as they bought at higher prices earlier. Given the sharp drop in
prices and poor orders, steel mills may reduce production further in July.
However, with the recovery of profit margins, the production cut in July may be
smaller than expected. The output of stainless steel in July is estimated to
fall by 11.98% year-on-year. The output of the 200-series and 300-series is
expected to fall 7.76% MoM and 4.73% MoM respectively. The output of the
400-series may rise 3.98% month-on-month.
Source: SMM Information & Technology Co, Ltd