China: Stainless steel production decreases 8% y-o-y in Q1CY22

Chinese stainless steel production decreased 8% y-o-y in Q1CY22. The production volumes stood at 7.65 million tonnes (mnt) against 8.35 mnt in Q1CY21. The highest drop of 16% y-o-y was seen in January which was recovered in the subsequent months, February and March, although there was dip of 6% and 3% y-o-y respectively.

The production in January, February and March, stood at 2.34 mnt, 2.41 mnt and 2.91 mnt, respectively.

The major drop of 23% y-o-y was seen in 200 series production in the first three months followed by a 16% decrease in 400 series.

However, the production of 300 series stainless steel improved with an increase of 8%, despite the rise in global nickel prices.

Nickel prices have been volatile in the recent months due to geopolitical reasons. Nickel crisis at LME pushed its prices to the highest level which now look stable although the recent Covid outbreak in China has impacted production across the commodities including stainless steel.

China is the largest stainless steel producer in the world with the share of 59% in global production. It also holds the seventh position in global nickel production, which is a major alloying element in stainless steel, as per SteelMint data.