Since July, the steel supply has been decreasing gradually as the mills have started the practice of reducing output which is expected to have large influence towards the steel market.

The production reduction for a range of 20 percent is planned in June already where more or less, mills did put it into the force. The weak market demand and decreased output all twist the spot price and actual market price balance.

Currently the export price of cold rolled steel dropped to US$4200/mt.

Although the slid of China’s stainless steel price reflects the falling trend of nickel price but more fundamentally is affected by the mills’ production management and market policies. The recent trend shows that the price falling range is even more than the drop of nickel which confirm that China’s stainless steel price is moving away from the completely nickel dominated stage.