Indonesia's Tsingshan to cut stainless steel production due to low market
6 Sep 2022 16:34 reported by Stanley Wang
Indonesia's Tsingshan Holding Group decided to cut its production by 30% in September and October. Tsingshan stated that the stainless steel demand was low, but the market for new energy materials hiked. As a result, it decided to put nickel resources on nickel matte in the new energy resource industry.
Currently, the Taiwanese and Chinese stainless steel markets fluctuate. However, the steel market was forecasted to stay stable gradually in the future, and some buyers might start to refill their stocks.
With the production cut, Taiwan's steel mills are likely to face rising scrap purchasing prices. Although the nickel price at the London Metal Exchange (LME) decreased, the price of carbon scrap increased. Therefore, Taiwan's steel manufacturing costs might grow in the short term.
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