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Output Of Stainless Steel In China For CY 2008 With Increased 200 Series Production
= Produced 6.94 Million Tons In Total, Having Decreased From That In 2007
According to the data compiled by The China Special Steel Producers Association, China produced 6.94 million tons of crude stainless steel in the calendar year (January - December) of 2008, which decreased by 3.8% compared with that (7.21 million tons) in the preceding year of 2007. The production of crude stainless steel in China so far renewed the record in every year and continued to increase on a basic tone but at last turned to decrease in 2008.

It was informed from China that the matter to decrease stainless steel production in China had shown a sign in May of 2008 to cope with an increase of the stocks and has been materialized on a substantial scale from September. Some of medium and small stainless steel mills in China have been driven to suspend their production and major mills are also unable to escape from a considerable cutback of their stainless steel production. Namely, such major stainless steel companies of China as Taiyuan Iron & Steel, Zhangjiagang Stainless Steel, Baosteel Group, and so on have been reducing their stainless steel production by 40 - 50%. China so far produced crude stainless steel on a scale of 490,000 tons per month but has been forced to shrink their production to a scale of 280,000 tons per month from October.

However, according to the data released by the Stainless Steel Section of China, this country produced 1.57 million tons of 200 series stainless steel (containing low nickel and high manganese) in 2008 as their specialty, which exceeded that (1.18 million tons) in the preceding year of 2007 and shared 22.6% of the whole production of stainless steel in China for 2008 (compared to 16.4% for 2007).

China expanded their production of 200 series stainless steel in 2008 but, contrarily, decreased their production of 300 series stainless steel (containing high nickel) in 2008 to 3.51 million tons, which had a considerable decline of 16.2% compared to that (4.19 million tons) in 2007. For a reference, China produced 1.86 million tons of 400 series stainless steel (containing high chrome) in 2008, having remained as nearly unchanged from that (1.84 million tons) in 2007.

China has been producing stainless steel on a substantial scale from 3 years ago and is anticipated to increase further their production of 200 series stainless steel. Nickel prices had continued to rise steeply for the last 3 years in the international market but have turned to fall from the second half of 2008 and, therefore, it is now marked to see how many quantity of manganese metal will be used to produce 200 series stainless steel, which contains low nickel and high manganese.

However, in spite of the fact that nickel prices have fallen to a large extent from the second half of 2008, it was known from statistics released in China that the output of 2000 series stainless steel in China for 2008 was not influenced by this sharp fall of nickel prices.

For a reference, according to the customs-statistics released in China, the quantities of stainless steel products imported and exported by China in January - November of 2008 were <> imports : 1,406,644 tons (decreased by 28.05% from that in the same period of 2007) and <> exports : 958,450 tons (decreased by 28.02% from that in the same period of 2007). In November of 2008, when a crisis of the world economy commenced, China imported 47,941 tons of stainless steel products (decreased by 28.75% from that in the same month of 2007) and exported 88,302 tons of stainless steel products (decreased by 25.07% from that in the same month of 2007).
last modified : Wed 25 Feb, 2009 [10:41]
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