China's stainless grows despite weak global markets

China's stainless grows despite weak global markets

China's cold rolled stainless sheet production capacity reached 2.4-2.5 million tons in 2005 with the completion of new projects from Taiyuan Steel, Ningbo Baoxin, Shanghai Krupp, Qingdao Pohang Stainless and Guangzhou Lianzhong Stainless. When the projects under construction in Taiyuan Steel, Guangzhou Lianzhong Stainless Steel and Jiuquan Steel are completed by 2007, the domestic production capacity of China will reach 3.6 to 4 million tons. Meanwhile, global stainless steel growth is slowing despite China's booming industry. Global stainless steel production increased 5.7 percent year on year in the first half, a drop of 2.1 percentage points from a year ago. Falling stainless steel prices and higher alloy surcharges are to blame for the decrease in global growth. Even though stainless steel prices are not favorable in China either, they are better than other markets. Domestic stainless steelmakers continue to increase production on a daily basis, and many foreign producers prefer the Chinese market.