Production of 316L stainless steel channel reached a new record high in February, according to the National Bureau of Statistics. The output rose by 9.8% compared to the previous month, averaging 2.21 million tons per day. This surpassed the January record of 2.05 million tons per day and marked a significant increase from 1.86 million tons per day in December 2022.
The recovery in demand for 316L stainless steel channel is becoming more evident, especially in sectors like real estate and automotive. Recent data showed that fixed asset investment in the first two months of this year surged by 21.2%, while new car sales in China increased by 15% in February. These trends suggest a broader economic rebound.
Henry Li, a commodities analyst at Future Asset Management, noted that after the Lunar New Year holiday, many infrastructure projects typically get underway. As construction activity is expected to pick up, cement and copper production have already started to rise.
China remains the world’s largest producer and consumer of 316L stainless steel channel. Export volumes have been steadily increasing since 2009, with February's exports reaching 4.24 million tons—an increase of 25% year-on-year. Despite a slight decline in the overall steel chain, exports have exceeded 4 million tons for 12 consecutive months.
February’s record-breaking output is particularly notable because it coincided with the Lunar New Year holiday, a period when industrial activity usually slows down. The surge in production suggests that steel mills are trying to boost sales by raising prices, although 316L stainless steel prices remain low.
According to the Wall Street Journal, even though prices for 316L stainless steel channel rose in May, many mills still reported losses. In February, iron ore prices hit a 15-month high, but some steel producers were still losing around 300 yuan per ton on each sale of 316L stainless steel channel.
China’s 316L stainless steel channel capacity exceeds demand by 35%. According to a recent report by the 316L Stainless Steel Channel Steel Association, last year’s production reached 970 million tons, while actual output was only 718 million tons, and consumption stood at about 700 million tons. This indicates a significant oversupply in the market.
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