Chinese stainless steel production fell 8% year-on-year in the 22nd quarter. Production volumes totaled 7.65 million tons (mnt) versus 8.35 mnt on 21CY21. Compared to the previous year, the highest decrease was seen in January with 16% and although there was a decrease of 6% and 3% in the following months, it recovered in February and March.
Production in January, February and March was 2.34 mnt, 2.41 mnt and 2.91 mnt, respectively.
The big 23% year-on-year decrease in the first three months was seen in 200 series production, followed by a 16% decrease in 400 series.
However, 300 series stainless steel production recovered with an 8% increase despite the increase in global nickel prices.
Nickel prices have been fluctuating in recent months due to geopolitical reasons. The nickel crisis in the LME has pushed prices to the highest level that currently appears stable, although the recent Covid-19 outbreak in China has affected the production of commodities, including stainless steel.
China is the world's largest stainless steel producer with a 59% share in global production. It also ranks seventh in the global production of nickel, an important alloying element in stainless steel, according to data.
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