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Output Of Crude Stainless Steel In China For CY2008 Is Supposed To Come To 7.10 Million Tons
= A Forecast By China Metal Materials Trade Association, To Decrease By 6%
According to a forecast made recently by an executive of China Metal Materials Trade Association, the output of crude stainless steel in China for the calendar year (January - December) of 2008 is supposed to come to 7.10 million tons with a decline of 6.6% from that for the preceding year of 2007. A scale of crude stainless steel to be produced in China for 2008 was expected at the beginning of the year to reach 8.30 million tons per annum but is now anticipated to decrease considerably.

However, according to the data compiled in spring of this year by China Special Steel Producers Association, the output of crude stainless steel in China for the calendar year of 2007 was estimated at 7.21 million tons, consisting of <> 300 series products : 4.19 million tons (shared 58.1% of the whole), <> 400 series products : 1.84 million tons (shared 25.5% of the whole) and <> 200 series products : 1.18 million tons (shared 16.4% of the whole).

The quantities of crude stainless steel produced in China for each quarter of 2008 are supposed to be <> January - March quarter : 1.97 million tons, <> April - June quarter : 1.89 million tons and <> July - September quarter : 1.65 million tons. However, the production activities of crude stainless steel in China for October - December quarter of 2008 have strengthened a basic tone to decrease further.

The production of stainless steel in China had expanded amazingly in the past years and it is thought that China produced 5.30 million tons of crude stainless steel in 2006 and 7.50 million tons in 2007.

For a reference, China Metal Materials Trade Association has viewed that, in the composition of stainless steel broken down by each kind of steel to be produced in China, the production of chrome-based stainless steel (400 series products) is expected to increase as seen from the actual quantities recorded in Japan and South Korea. There is an opinion in the market that, reflecting an elevation of the technologies for applications, a portion of chrome-based stainless steel to be produced in China will move to increase from 25 - 30% to 50-60% in the near future.

Also, if nickel price recovers and rises to a higher level than US$20,000 per ton, the demand for electrolytic manganese metal as a substitutive material for nickel is supposed to arise again from an economic point of view. The Association said that, when the production of 200 series stainless steel (Cr-Mn-Ni based products) in China increases, Chinese stainless steel mills will incline to consume more ferro-nickel than nickel metal.
last modified : Fri 26 Dec, 2008 [11:05]
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