China's stainless sector decides on cutting CR
The six major
stainless steel producers of
China have reportedly held a meeting in Shanghai, where they decided to reduce cold rolled
stainless steel
production 50% in order to keep their prices at its current level in May.
The weak demand for cold rolled
stainless steel and higher prices of hot rolled
stainless steel caused to a decline in the profit margins of these companies obtained from cold rolled
stainless steel trade.
The steelmakers are worried that excessive inventory of cold rolled
stainless steel would lead to further price decreases in cold rolled steel segment, where they already have a small profit margin.