China's stainless sector decides on cutting CR

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.