China's Stainless Steel Production Reaches New Heights in 2024

Stainless Steel

Record Output Driven by Robust Feedstock Supply and Global Demand

China's stainless steel industry achieved a record-high melt shop output in 2024, bolstered by a solid supply of feedstock and a strong demand from international markets. This surge in production underscores China's expanding influence in the global stainless steel market, positioning it to capitalize on growing consumption trends.

Diverse Product Range and Market Dynamics

The production dynamics varied across different stainless steel series, reflecting diverse market demands and applications. The 300 series, known for its high nickel content, saw an increase in output, mainly due to expanded production capacities in Shandong and new capacities in Fujian. In contrast, the 200 series—which contains lower nickel and higher manganese, typically used in construction and manufacturing—experienced a slowdown due to a sluggish real estate sector. Meanwhile, production of the 400 series, which is chrome-based, increased significantly as it began to replace some of the demand for the 200 series.

International Trade and Future Prospects

In 2024, China's stainless steel exports grew by 21.9%, reaching 5.04 million tonnes, supported by competitive international pricing and the availability of raw materials, particularly ferronickel. Imports of ferronickel, crucial for stainless steel production, also rose, largely due to increased shipments from Indonesia. Looking ahead to 2025, China's stainless steel production is expected to continue growing. This forecast is supported by a drop in prices for 304 stainless steel cold-rolled coil and the ongoing availability of cost-effective Indonesian ferronickel, which keeps Chinese products competitively priced in the global market.