Based on SMM research, in June 2023, the nationwide stainless steel production totaled approximately 3,018,400 mt. This represents a decrease of around 2.47% compared to May and a year-on-year increase of about 11.28%.

In terms of different series, the production of 200-series stainless steel amounted to approximately 899,600 mt, experiencing a month-on-month decrease of around 3.22%. The production of 300-series stainless steel reached approximately 1,577,800 mt, showing a month-on-month increase of about 1.50%. Meanwhile, the production of 400-series stainless steel was approximately 543,200 mt, with a month-on-month decrease of around 0.99%.

In June, the traditional industry entered its off-season, resulting in generally weak end-user market demand and modest transactions. Despite this, the 200-series stainless steel maintained a certain profit margin due to favorable cost conditions, prompting some steel mills to shift production from the 300-series to the 200-series. However, annual maintenance and unexpected shutdowns at several steel mills in June negatively impacted the production of 200-series stainless steel, leading to a slight decrease in overall output.

In the case of the 300-series, a substantial price drop in June further contracted profit margins. This continuous decline in prices led stainless steel mills to adopt a cautious attitude towards 300-series production. Nevertheless, some steel mills resumed production of the 300-series, resulting in little change to its overall output.

The 400-series stainless steel continued to experience losses, and with high inventory levels, billet production remained stable.

In July, a slight overall decrease in production is expected. The 200-series will be impacted by maintenance and shutdown plans at some steel mills, resulting in a minor reduction in output. In contrast, the 300-series experienced a decrease in social inventory levels in June, with limited stock available in the spot market. August's order transactions were satisfactory, and stainless steel mills took measures to support prices, leading to a modest price rebound compared to the previous month. Consequently, the 300-series is projected to see an increase in production. However, overall market demand remains underwhelming, with procurement primarily driven by essential demand, and the growth in output will be relatively small.

As for the 400-series, prices continue to operate at weak and stable levels, but ferrochrome prices have consistently been high, and the negative profit margin situation has not improved. Therefore, a slight reduction in production is anticipated in July.