China: Stainless steel output hits over 2-year high in Aug'24; exports surge 19% m-o-m

China, the world's largest stainless steel producer and consumer, experienced a slight increase in production in August at 3.36 million tonnes (mnt). This represents a 3% y-o-y rise from 3.25 mnt in August 2023, It was also the highest level reached since 2022, the time from which BigMint has been tracking this data.

Meanwhile, China's stainless steel output increased by 7% y-o-y from January to August 2024, reaching 25 mnt, up from 23.3 mnt during the same period last year, according to the provisional data maintained by BigMint,

Series-wise bifurcation

Where production is concerned, the 400 series saw a m-o-m decline of 2% in August 2024, settling at 0.65 mnt. In contrast, output of the 300 series rose 3% m-o-m to 1.69 mnt, up from 1.64 mnt in July. Meanwhile, production volumes of the 200 series remained stable, holding steady at 1.02 mnt.

When comparing y-o-y output , the 400 series showed the most substantial growth at 33% from 0.49 mnt in August 2023.

China's SS scrap import scenario

In August, China imported approximately 7,060 t of stainless steel scrap, reflecting a significant y-o-y decline of 61%, according to data from the General Administration of Customs (GACC). For the first eight months of the year, the country's total stainless scrap imports dropped by 70% to around 67,300 t.

As per secondary sources, the average unit price of imported stainless scrap also decreased last month, settling at $1,045/t, down from $1,110/t in July.

Despite this annual decline, China's stainless scrap imports in August increased by 33% compared to July's 5,320 t, coinciding with a monthly rise in crude stainless steel production.

However, stainless steel producers in China faced shrinking profit margins over the past month, which discouraged them from importing more expensive raw materials like stainless scrap.

Japan remained the largest supplier of stainless steel scrap to China, exporting about 36,850 t in August. This figure represents a 50% increase from the previous month but is still 65.6% lower from the same period last year, according to GACC data.

China's finished SS exports soar m-o-m

According to data from the General Administration of Customs of China, the country's stainless steel exports reached approximately 488,000 t in August, marking a new high with a m-o-m increase of 19% and a y-o-y rise of 33%. The surge in exports comes as manufacturers increasingly turn to the global market amid sluggish domestic demand.

This growth was largely driven by a significant surge in stainless steel coil exports, particularly for widths over 600 mm. Hot-rolled coil exports rose by 22%, while cold-rolled coil exports increased by 20%, both compared to the previous month.

In the first eight months of this year, China's stainless steel exports totalled around 3.3 mnt, reflecting a 23% y-o-y increase.

On the import side, China brought in about 99,500 t of stainless steel in August, representing a 17% decrease from the previous month and a 7.5% decline compared to the same month last year.

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