SHANGHAI, Aug 14 (SMM) –
According to an SMM survey, the domestic stainless steel output totaled 3.1645 million mt in July, a drop of 12.90% month-on-month compared with June and 16.41% year-on-year. The output of the 200-series steel rose 4.49% MoM to 899,600 mt, that of the 300-series steel increased 22.61% MoM to 1.6458 million mt, and that of the 400-series steel rose 4.84% MoM to 578,700 mt.
In early July, affected by the traditional off-season, the terminal market was still sluggish, so most of the market transactions were based on rigid demand purchases. In late July, boosted by positive macro sentiment and the support of raw materials, the market transaction situation improved somehow, and the overall price rose. In June, some steel mills in South China stopped production or conducted maintenance due to sudden heavy rain, causing the total output of 200-series and 300-series stainless steel to be reduced by 120,000 mt. In July, with the expanding profit margins of 200-series and 300-series stainless steel, and rising orders in East China, stainless steel production increased significantly. A steel mill in Northwest China has maintenance plans in July and August due to losses, thus the production of 400-series steel may be affected to some extent.
It is expected that there will be significant production growth in August. The traditional peak season of September-October makes steel mills and traders optimistic about the downstream market demand. Due to the good condition of receiving orders, a steel factory in South China will continue to delay its maintenance plan. Social inventory declined slowly in July. A large steel mill in East China received more orders in August.
