According to statistics, China’s stainless steel production totaled roughly 2.37 million tons in July this year, dropping by 10.4% compared to the preceding month and by 18.8% from the same month a year earlier.

It was expected that the output of 300 series stainless steel will rebound by 7%, but the production of 200 and 400 series might not rise significantly owing to weak consumption. The consumption was expected to recover this month, while it might not resume much.

The downstream enterprises’ operating rates and replenishment will be affected by the high temperature, but the demand will be basically greater than in July.

Besides, the digestion of inventories was slower than expected, which will force China’s steel mills to cut their production further.