Leading Chinese stainless steel producers, including Tsingshan, BG New Materials, and Baosteel Desheng Stainless Steel, have jointly implemented production cuts exceeding 300,000 tons of 200-series products, primarily 201 stainless steel.
The three mills represent 64% of China’s total 200-series crude stainless steel output last year, so the collective output cut action immediately lad to an upward trend in spot prices for 200-series products yesterday (October 29). Prices generally increased by CNY 50 to 150 per ton.
Despite improved sentiment, market demand remains soft, with downstream buyers maintaining a need-based procurement. Market participants expect that while the supply pressure is easing, short-term price movements will likely remain stable.