China: Stainless steel production inches down m-o-m in March 2023

China, world's largest stainless steel producer and consumer, witnessed its production at 2.79 million tonnes (mnt) in March 2023. Production edged down by 1% as against 2.81 mnt in February, as per data maintained with SteelMint.

Similarly, the output declined by 4% from 2.91 mnt in March, 2022 compared to 2.79 mnt in March, 2023.

During March, the demand for stainless steel was slightly lower than anticipated, resulting in high inventory levels at steel mills. Additionally, prices of raw materials such as nickel and scrap stainless steel rose, causing a decline in prices of all types of stainless steel.

Furthermore, numerous stainless steel mills reduced their production due to low profit margins.

Series-wise output

• 300 series: Out of the total production, 300 series stood at 1.46 mnt in March, 2023 against 1.48 mnt in the previous month, down by around 2% m-o-m. In contrast, the production increased y-o-y to 1.46 mnt in March, 2023 as compared to 1.43 mnt in March, 2022.
  
  
• 200 series: The output of 200-series recorded at 0.84 mnt, marginally down by 1% in March, 2023 against 0.85 mnt in February, 2023. Similarly, in March 2022 the production was 0.87 mnt against 0.84 mnt in March, 2023.
  
  
• 400 series: A slight increase of 2% was observed in the total output of 400 series stainless steel, which was 0.49 mnt in March, 2023 compared to 0.48 mnt in February, 2023. The output fell by 20% from 0.61 mnt in March, 2022 to 0.49 mnt in March, 2023.
  
  

Outlook

China's stainless steel market is being impacted by the sluggish global market. It is anticipated that there will be fluctuations in stainless steel prices in April, with the possibility of further drops. However, markets may adopt a wait-and-see approach due to rapid increase in raw material prices.