Posted on 29 Jan 2026
China's cold-rolled (CR) stainless steel sector is set for further expansion in the coming year, driven by strategic capacity increases.
According to Mysteel's latest survey of 41 domestic stainless steel re-rollers, total domestic CR stainless production is projected to reach 18.08 million tonnes in 2026, marking a year-on-year increase of 1.1 million tonnes or 6.5%.
This projected growth is primarily attributed to the gradual commissioning of new projects. However, Mysteel Global notes that the overall expansion could be tempered by persistently weak demand in certain end-user markets.
A detailed breakdown shows expected output growth across all major stainless steel series. Production of the 200-series is expected to reach 5.69 million tonnes this year, a significant on-year increase of 500,000 tonnes or 9.6%. Production of the dominant 300-series is estimated at 8.92 million tonnes, up 400,000 tonnes or 4.7%. That of 400-series output is expected to advance by 200,000 tonnes or 6.1% to 3.48 million tonnes, the survey results show.
Mysteel Global observes that this consistent multi-year growth is a direct strategic move by producers in response to market dynamics. Strong demand from sectors such as automotive and home appliances – which rely on the precise materials produced by CR mills – is a key contributor. Meanwhile, mills are strategically optimizing their product mix toward these premium, high-value-added segments to improve profitability, according to a Wuxi-based analyst.
Major stainless producers, including Yongjin Corporation, Hongwang Holding Group and Liyang Ruida New Materials Group, have invested in downstream cold-rolling capacity to secure market share and directly serve sophisticated end-users, Mysteel Global understands.
Geographically, China's stainless steel production remains heavily concentrated in the eastern and southern coastal regions. Jiangsu province in East China leads with a 26% share, followed by Guangdong in South China at 24% and neighbouring Fujian at 18%.
Source:Mysteel Global
