According to the China Iron and Steel Association's Stainless Steel Branch, China's stainless steel market has been experiencing a "strong supply, weak demand" dynamic since 2023. The country's crude stainless steel production is expected to rise by 3.2-5% this year, reaching 38 to 38.5 million tons. While apparent consumption will also increase, it is projected to grow at less than half the pace of production.

During the first three quarters of 2024, China produced about 28.63 million tons of crude stainless steel, up by 960,000 tons, or 3.45% year on year. In contrast, apparent consumption rose by just 1.73%, or 400,000 tons, to 23.7 million tons. The oversupply issue remains significant as demand has not improved noticeably, leading to continued market imbalance.