- More than 23 million tonnes (crude) in 2014
- We visited 70 companies in 50 cities
China Stainless Steel Crude Production: Slight decline in 2015 – but still major investments planned!
After reaching a record high of 23.1 million t in 2014, Chinese stainless steel melt production slightly declined to 23.0 million (- 0.4 %) in 2015. This is the first drop ever of Chinese crude output after several years of double-digit growth rates.
This, however, did not stop Chinese producers from installing additional capacities, contrary to the central government’s announcements to fight overcapacities in the steel sector. Just in 2015, close to 2 million tonnes of fresh melting capacity came on stream and another 5 million tonnes are planned until the end of 2018. Capacity utilization fell to 66 % in 2015 and could further go down below 60 % by 2018 unless some mills cease their production.
Several smaller and higher cost producers of stainless steel already stopped operations in 2015 and it is likely that more companies will follow. Major newcomers to the industry operate based on integrated NPI plants and can directly feed liquid NPI into the AOD which gives them significant cost advantages compared to traditional production routes. If successful, these newcomers could force some existing producers to shut down. Potentially, this new production route could spread to other countries and revolutionize the stainless steel industry.
Apart from expanding melt production capacity, also massive downstream investments are on the way which will allow some of the big producers to not just offer slabs but also finished hot and cold rolled coils. Especially in the cold rolling sector, many small scale narrow width producers are shutting down and are being replaced by modern, cost competitive plants including continuous tandem rolling mills.
Whilst melt production declined in 2015, Chinese domestic stainless steel consumption has been rising continuously. Real demand increased by around 3 % which is below the officially announced GDP growth rate of around 7 % but well above the global stainless demand growth of just 1 % in 2015. Whilst growth rates in percent are expected to further come down in 2016, China remains the global growth engine for stainless demand in tonnage terms and will account for more than 90 % of the expected global tonnage growth in 2016.
SMI GmbH just completed its annual in-depth analysis of the Chinese stainless steel industry:
This detailed market report introduces 70 Chinese stainless steel producers of flat and long products located in 50 cities, ranging from large state owned producers to small private newcomers. Information about their products (dimensions, grades), production volumes and production equipment is also included in the report. Producers are classified into quality segments ranging from high ‘import’ quality to low quality for domestic use.
All producers require raw materials in form of scrap, nickel pig iron, primary nickel, chromium, manganese and molybdenum, which are sourced from the domestic market or imported. The total demand for these raw materials is shown in the report as well as a projection of future requirements.
The report concludes with a potential scenario for the domestic demand until 2021 (broken down by end use segments), future capacities and capacity utilization, production volumes as well as import and export levels.
You can learn every detail about this market without even travelling there, saving travel costs and valuable time!
If you would like to have more details about this report, please download the documents on the bottom of this page or contact us.
Stainless steel producers ask:
- How can I benefit from the growing Chinese market?
- Is China flooding the world with Stainless products?
- Who are my competitors for certain products?
- How much capacity is installed and will new capacity be added?
- Are capacity additions driven by growing domestic demand or aiming for increasing exports?
Raw material suppliers ask:
- Who is buying raw materials (scrap, nickel, chromium, molybdenum) and what is the raw material mix of each mill?
- What is the future of nickel pig iron after the Indonesian ban on ore exports?
- When will the scrap usage increase as a result of lower nickel pig iron availability?
- Angang LISCO (Guangzhou)
- Baosteel Desheng Stainless
- Baosteel Special Metals
- Baosteel Stainless Steel
- Changcheng Special Steel
- Dongbei Special Steel
- Fujian Fuxin Special Steel
- Fujian Wuhang
- Guangxi Chengde Group
- Guangxi Wuzhou Jinhai
- Guangxi Zhongjin Metal
- Henan Xinjinhui Stainless
- Inner Mongolia Shangtai Industrial
- Jiangsu Delong
- Jiangxi Shengda Stainless
- Jinguang Group Southwest Stainless
- Jinguang Group Yunnan Tiangao
- Jiugang Tianfeng Stainless (JISCO)
- Lianyungang Huale Alloys
- Shandong Taishan Stainless
- Shandong Xinhai
- Shanxi Taigang (TISCO)
- Shenyuan Special Steel
- Tsingshan Holding Group
- Xingtai Iron & Steel
- Xining Special Steel
- Yantai Jincheng (Walsin)
- Yongxing Special Steel
- Zhangjiagang Pohang Stainless (ZPSS)
- Zenshi Group Eastern Special Steel
- and many more…