Posted on 03 Aug 2022
China's total crude stainless output declined to 16.35 million tonnes during the first six months of this year, lower by 908,000 tonnes or 5.3% from the same period last year, according to the latest release by the Stainless Steel Council of China Special Steel Enterprises Association (CSSC) published on July 29.
Production of all grades of stainless fell on-year during January-June, with the volume of 200- and 400-series stainless seeing the sharpest on-year decreases in percentage terms of 7.4% and 7.2% respectively, the CSSC data showed.
The decline in production during this year's first half was partly due to the impact of the Winter Olympic Games held in and around Beijing in February, when manufacturers in northern China including stainless mills were asked to curb production to ensure clear skies for the events.
In addition, the resurgence of COVID-19 in many regions over March-April also affected the normal production of some steel mills in East China, as their supplies of raw materials had been impacted by local authorities' stricter measures to combat the spread of the virus.
The weak demand from end-users was another key factor for the lower stainless output in H1, as many domestic stainless producers opted to conduct maintenance on their steelmaking facilities or slowed their production pace in June, given their poor sales and the losses they were suffering, Mysteel Global noted.
For the first six months, China's apparent stainless consumption was estimated at 14 million tonnes, lower by 796,000 tonnes or 5.4% from the same period last year, according to the association's release.
However, China's production of high-end duplex stainless enjoyed healthy growth during this year's first half to top 152,150 tonnes, up 20,451 tonnes or 15.5% from one year earlier, the release showed.
Over January-June, the country's stainless exports reached 2.42 million tonnes, up 232,000 tonnes or 10.6% on year, while imports also jumped by 276,600 tonnes or 19.6% on year to 1.69 million tonnes, the CSSC data showed.
Source:Mysteel Global
