STEEL NEWS

Consumption of stainless steel in China in the II-IV quarters should improve

According to SMM analysts' observations, stainless steel consumption in China increased markedly in July compared to June, but was weaker than July 2019, while steel stocks continued to decline, indicating active sales in large markets. It is noted that the growth in demand for steel in the construction and residential sectors spurred the recovery in steel consumption. Experts predict an improvement in steel consumption in the II-IV quarters, with an annual growth of 2.6%. It is expected that the production of 300 series stainless steel per month will exceed in the second half of the year the same figure for the same period last year. Experts predict stable production of stainless steel amid increasing profitability of the enterprises, which should support demand for nickel. It is also expected that strong demand for stainless steel with sufficient supply of nickel pig iron in the second half of 2020 is unlikely to provide significant support to nickel prices.