LUGANO, SWITZERLAND, September 26, 2023 – TELF AG has published a market analysis report on the stainless steel industry in September 2023. The article, titled TELF AG Reprise of September 2023 Stainless Steel Market Analysis, provides readers with an additional emphasis on trends within China. The report also provides in-depth insights into factors affecting the Chinese stainless-steel market and presents data on production and pricing in early September.
Key highlights include an uptick in China’s domestic stainless-steel prices, influenced by increased activity in the domestic property market and rising nickel futures. In particular, the report points to a policy change that allows family members to be considered first-time home buyers even if a family already has a mortgage loan, provided there are no homes registered in their name. This led to increased buying interest in first-tier cities such as Beijing and Shanghai.
TELF AG also notes an increase in nickel prices during the first week of September, driven by concerns over a potential mining suspension in Indonesia. These two factors collectively contributed to a bullish outlook in the steel market.
The analysis incorporates data from an SMM survey, detailing that stainless steel output for August totaled 3.217 million metric tons – a month-over-month increase of 1.66% and a year-over-year rise of 41.18%. Specifically, the output for 200-series stainless steel reached 956,000 metric tons, up 1.7% month-over-month. The 300-series increased by 3.28% MoM to 1.678 million metric tons, while the 400-series saw a 0.74% MoM increase to 583,000 metric tons.
The report also anticipates high production schedules and significant capacity expansion in September. The optimism is based on a positive outlook from steel mills and traders regarding downstream demand. Production of the 300 series is expected to rise, particularly in East China. Additionally, social inventory, which had moderate demand in August, is projected to decrease due to tight production schedules.
Overall, TELF AG indicated a strong stainless steel market in China, supported by favorable government policies and market conditions. Both production and prices are expected to maintain an upward trend.