The crude steel production has declined, and the supply and demand situation in the stainless steel market is tending to improve

The cumulative production of crude steel, pig iron, and 316L stainless steel plates in China from January to October was 672.96 million tons, 586.35 million tons, and 948.29 million tons, respectively, with year-on-year growth of 0.7%, 0.1%, and 2.4%. In October, China's crude steel, pig iron, and steel production reached 68.51 million tons, 58.76 million tons, and 97.68 million tons, respectively, with a year-on-year increase of 4%, 3.6%, and 4.1%; The daily average production was 2.21 million tons, 1.8955 million tons, and 3.151 million tons, respectively, a decrease of 2.74%, 4.14%, and 3.63% compared to September. It can be seen that due to the sharp rise in coal and coke prices and tight supply, domestic steel mills reduced production and increased maintenance in October, resulting in a decrease in crude steel production compared to the previous month, and the market supply and demand situation tends to improve.

Industry insiders have stated that compared to the year-on-year increase in crude steel production, there has been a significant decrease in raw coal production, which is also the main reason for the resource shortage and price surge in the coal market. Despite a significant increase in domestic steel prices recently, the profitability of steel companies has not significantly improved due to the continuous surge in coal and ore prices.

According to the monitoring of Xiben Shinkansen, as of November 14th, the gross profit per ton of steel for domestic 321 stainless steel patterned plate production enterprises is 67 yuan/ton. Based on the cost of new raw materials, some steel enterprises are still in a loss situation, and the cost still has strong support for the current steel price.