According to the forecasts of the Chinese publication Shanghai Metals Market (SMM), the stainless steel production volume of the provinces in the country in September may decrease by 18.9 percent or 530 thousand tons from the previous month due to the imposition of a series of production restrictions.
As noted by SMM, a significant limitation in stainless steel production was observed in August alone in Guangxi province. However, in September, authorities in several other provinces and districts demanded that steelmakers reduce their smelting to reduce electricity consumption and reduce the burden on the environment.
According to SMM calculations, the production of 200 series stainless steel will decrease by approximately 200 thousand tons, or 24%, in September, while the production of the 300 series will decrease by 330 thousand tons or 22.4%. However, the restrictions may last until mid-October.
In addition to stainless steel, nickel-containing pig iron (ferronickel crude, NPI) production is expected to decline in China. Its September launch should drop by 43%. At the same time, the recession will primarily affect NPI production capacities in metallurgical plants.
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