Posted on 10 Feb 2026

China's stainless steel production rose in January as mills ramped up operations to capitalize on firm prices and healthy margins, Mysteel's latest survey results show.

The country churned out 3.54 million tonnes of crude stainless steel last month, representing a significant increase of 275,900 tonnes or 8.5% from last December, and a jump of 28.9% compared to January 2025, according to the results of Mysteel's most recent survey among the 43 stainless producers it regularly tracks nationwide.

The monthly increase was primarily driven by significantly improved mill profitability, Mysteel Global noted. A vigorous stainless price rally in January significantly expanded margins, encouraging mills to maintain high operating rates.

At end-January, Mysteel assessed the spot price of 304/2B Hongwang 2*1240mm stainless cold-rolled coil (CRC) in Wuxi, East China, at Yuan 14,400/t ($2,075/t) in-warehouse and including the 13% VAT, higher by a significant Yuan 1,250/t from a month earlier. Consequently, China's integrated stainless mills that use outsourced high-grade nickel pig iron had achieved an average daily gross margin of around Yuan 368/t on every tonne of 304-grade CRC sold last month, up Yuan 207/t from the previous month, according to Mysteel's assessment.

Furthermore, a monthly decline in stainless steel inventories meant the new supply did not immediately pressure the market, giving mills room to lift output. Mysteel's survey among the 89 warehouses across six major Chinese cities that are regularly monitored showed that by the end of January, total stainless stocks stood at 952,674 tonnes, lower by some 2.5% from end-December.

Production rose across all major stainless series last month. Output of the widely-traded 300-series, according to the survey results, increased to 1.86 million tonnes, up by 110,900 tonnes or 6.3% from last December, while output of 200-series gained 92,600 tonnes or 9.8% month-on-month to 1.03 million tonnes. Production of 400-series jumped by 72,400 tonnes or 12.6% to 645,200 tonnes.

However, output is set to retreat in February due to planned maintenance by mills and the extended Chinese New Year (CNY) holiday over February 15-23, Mysteel Global suggests.

Mysteel's survey results show that total crude stainless output is scheduled to plunge 23% from January to 2.72 million tonnes this month which, if realized, would also be down 10.1% year-on-year. Mysteel notes that 12 domestic stainless mills have scheduled production cuts or maintenance around the CNY holidays.

All series are expected to see reduced output. Production of 300-series is forecast to see the steepest drop, falling 27.9% month-on-month to 1.34 million tonnes. Output of 200-series is projected at 821,100 tonnes, down 20.5% on month, while 400-series output is expected to fall 12.9% on month to 562,000 tonnes.

Meanwhile, output in the key overseas hub, Indonesia, moved in the opposite direction last month, Mysteel Global notes. Total crude stainless production there fell by 4.7% on month and 8.9% from the year-ago level to 410,000 tonnes in January, Mysteel's data show.

Source:Mysteel Global

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