China’s stainless steel market faces short-term pressure in the third quarter before an anticipated rebound driven by production cuts and seasonal demand.
High temperatures and rain typically reduce construction activity in July and August, slowing inventory depletion in major hubs such as Wuxi and Foshan. To counter shrinking profit margins, stainless steel mills initiated maintenance, reducing planned output by an estimated 4.11% for the June-July period.
By September, the traditional “Golden September and Silver October” peak season, combined with equipment upgrade policies, should revive terminal procurement.
In terms of macroeconomics, global metal markets face pressure from potential US interest rate hikes and proposed tariffs.
In the domestic market, new industrial capacity replacement rules aim to phase out obsolete production. Raw material cost drivers continue to fade, leaving domestic supply and demand dynamics as the primary market driver.