China’s stainless steel crude steel production saw a notable increase [1] in March 2025, driven by industry expectations for peak seasonal demand and high raw material costs. However, production slightly declined in April due to environmental regulations and equipment maintenance.
In March, domestic stainless steel production surged by 19.02% month-on-month (MoM) and 12.67% year-on-year (YoY). The rise was largely fueled by the anticipated “Golden March and Silver April” period, a traditional peak season for steel demand. Producers ramped up output, expecting strong orders from downstream industries. Additionally, persistently high raw material prices encouraged mills to maximize production to offset costs.
Despite the increased supply, demand did not meet expectations. New orders remained scarce, with downstream buyers only engaging in essential restocking. This led to slow shipments and high inventory levels, creating an oversupply situation in the market.
Entering April, production saw a slight decline of 0.61% MoM, though it still maintained an 11.87% YoY growth. The dip was primarily due to environmental protection policies, which prompted some steel mills to conduct equipment upgrades and maintenance. These measures temporarily reduced output, but overall production enthusiasm remained high as rising stainless steel prices helped alleviate financial losses for producers.
By product series, 200-series stainless steel production increased by 3.17% MoM, while 300-series and 400-series saw declines of 1.89% and 1.98% MoM, respectively. As inventories gradually deplete, market demand is expected to improve, potentially stabilizing production levels in the coming months.
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[1] Why Did China’s Stainless Steel Crude Steel Production Increase in March and Slightly Decrease in April? https://news.metal.com/newscontent/103255975/why-did-chinas-stainless-steel-crude-steel-production-increase-in-march-and-slightly-decrease-in-april