Posted on 11 Jun 2025
China's crude stainless steel output fell for the second consecutive month to reach 3.46 million tonnes in May, down by 1.13% from April, though the figure remained 4.94% higher compared with May 2024, according to Mysteel's survey of 43 domestic stainless steelmakers.
The monthly decrease largely reflected seasonal production adjustments, as many stainless steel mills produced cautiously in response to subdued downstream demand and an anticipated summer lull for stainless consumption, market sources observed.
Among all product grades, 200-series crude stainless steel posted the sharpest decline. Output for this category registered 976,100 tonnes in May, down 3.58% from April and 6.97% from a year earlier.
The cuts in 200-series production were primarily attributed to sluggish downstream demand in the past month. Notably, inventories of 200-series stainless steel at the 89 warehouses across 6 Chinese cities tracked by Mysteel rose by 2.5% month-on-month to 187,955 tonnes as of May 30. This inventory accumulation amid mills' lower production suggested that demand was weaker than stainless producers had expected, Mysteel Global noted.
In addition, Mysteel Global heard on May 28 that a stainless steel mill in South China's Guangxi province suspended its blast furnace operations due to a substation malfunction, and the 17-day maintenance shutdown at the furnace was estimated to reduce 200-series output by a total of 40,000–50,000 tonnes.
For this month, output of 200-series stainless steel at the 43 sampled mills is projected to dip further, albeit at a slower pace. Mysteel estimates a 0.29% month-on-month drop to 973,300 tonnes.
Chinese mills' overseas stainless production also saw cutbacks last month. Mysteel heard Indonesia-based Yongwang Stainless Steel - a joint venture between China's Tsingshan Group and Hongwang Group - began a two-month maintenance shutdown on its cold-rolling line in late May.
As a result, the plant's stainless steel production declined to 360,000 tonnes in May from 420,000 tonnes in April. Market sources said the mill operated for less than half of May, and the 200-series stainless steel initially planned for May (as part of April's schedule) was not produced at all.
In parallel, China's austenitic stainless steel output declined too, with the combined production of this grade at the 43 surveyed mills reaching 1.78 million tonnes in May, down 2.17% from the previous month, Mysteel's data showed.
Industry insiders noted that production cuts among stainless mills are likely to extend longer than previously expected, as the seasonal slowdown in downstream stainless steel demand may prompt more mills to further reduce operating rates in the coming weeks.
Mysteel Global also learned that a stainless steel producer in Guangxi is planning to suspend operations for 25 days starting July 5 to carry out ultra-low emission renovation work. The temporary closure is expected to impact stainless steel output by around 80,000 tonnes.
Source:Mysteel Global
