Platts reported that China's stainless steel capacity is expected to exceed 20 million tonnes per annum by end 2010, up from 15 million tonnes per annum currently. Beijing Antaike Development said that "More than 10 million tonnes per annum of stainless steel facilities under construction are expected to be completed late next year." It added that the new plants will be located all over China, including Shanxi, Zhejiang, Guangdong, Liaoning and Hainan provinces, as well as in Inner Mongolia and Guangxi Zhuang Autonomous Regions.
Meanwhile, a commodity analyst with Shanghai based metals consultancy CBI China, said that the surplus stainless steel output, as a result of plants coming on line, will have to be sold in the overseas market as local demand will not be able to absorb them. Antaike forecasts that 50% of stainless steel output in China in 2009 will be of the 300 series with a nickel content of 8% to 10.5% on falling refined nickel prices this year.
It said the 200 series with a nickel content of 1% to 4% will account for 25% of Chinese stainless steel output, up from 23% in 2008. China produced 1.68 million tonnes of stainless steel during the first quarter of this year, down by 29% YoY. Chinese local stainless steel consumption in the first quarter of the year was 1.7 million tonnes, down by 6.9% YoY. Q1 stainless steel exports by China were 913,000 tonnes, down by 60% YoY and Q1 stainless steel imports by China were 322,400 tonnes, down by 24% YoY.
