2024-4 production data for stainless steel

In April 2024, the total national stainless steel production was about 3166300 tons, a decrease of about 0.37% compared to March and an increase of about 8.99% year-on-year. Among them, the production of 200 series stainless steel is about 865700 tons, an increase of about 22.91% compared to the previous period; The production of 300 series stainless steel is about 1.6385 million tons, a decrease of about 3.16% compared to the previous period; The production of 400 series stainless steel is about 662100 tons, an increase of about 7.69% compared to the previous period.

In early April, the overall stainless steel market was weak and prices continued to decline. However, as we entered mid April, downstream consumption of stainless steel improved. Due to the loss of stainless steel cost profits and the shortage of water quenched nickel raw materials, some stainless steel plants were originally scheduled to reduce production in April. However, since mid April, the demand for stainless steel terminals has rebounded, coupled with steel plants controlling market arrivals and slow macro nickel ore supply. The 2300 series stainless steel prices have been strong, and stainless steel profits have recovered and downstream orders have increased, resulting in another adjustment of production. The actual reduction in production is not as expected at the beginning of the month, with the correction mainly concentrated in steel plants in East China. On the other hand, a steel plant in Zhejiang resumed production capacity of 20000 tons of 300 series stainless steel in early April, and a steel plant in Jiangsu upgraded its production line, resulting in a daily steel production volume. There has also been a significant increase, while the overall consumption of 400 series stainless steel in April is still acceptable, The steel plant actively shifted its production capacity to around 40000 tons on the 400 series stainless steel production line, resulting in a slight decrease in overall stainless steel production for the 2300 series in April, while the 400 series increased production.

In May, after the holiday, social inventory and inventory accumulated again, and downstream demand weakened compared to April. The supply of nickel ore remained high, and the price of nickel pig iron continued to rise. The actual transaction of stainless steel was weak in the short term, but the cost line moved up and the bottom cost support force strengthened, making it difficult to rise or fall in the short term. Under price pressure, stainless steel plants still formulated an increase plan, with an expected increase of 9.18% in production compared to April. The 300 series stainless steel plant is expected to increase production by about 90000 tons. In mid May, a stainless steel plant in Central China is expected to resume production, with the 200 series stainless steel production expected to increase by about 20000 tons and the 400 series stainless steel production expected to decrease due to increased profits and losses caused by high chromium.