MEPs predicts that the global crude stainless steel output will reach 58.6 million tons this year. Growth may be driven by factories in China, Indonesia and India. Smelting activities in East Asia and the West are expected to maintain range fluctuations.

Chinas stainless steel production rebounded strongly in the first quarter of 2022. At the end of the Spring Festival holiday and the Beijing Winter Olympics, supply chain participants returned to the market in high spirits. Nevertheless, production is expected to decline in the second quarter.

In the main manufacturing center of Shanghai, the strict blockade measures related to novel coronavirus forced many stainless steel consumer enterprises to close down. Demand is weakening, especially in the automotive industry, with sales falling 31.6% year-on-year in April.

It is estimated that the smelting activity in India has reached 1.1 million tons in the first three months of this year. However, the production in the last two quarters may face negative pressure. Recently announced export tariffs on several steel products may prevent sales to third countries.

As a result, domestic steelmakers may cut production. In addition, low-cost imports from Indonesia account for an increasing share of the local market. The countrys supply is likely to surge in 2022.