Chinese major stainless steel mills have announced to slash production in July, in order to stabilize domestic market.

Stainless steel mills including Taiyuan Iron and Steel (Tisco), Baosteel, Guangzhou Lianzhou Stainless Steel, and Shanghai Krupp Stainless have come into an agreement to cut production by 20 percent to 30 percent next month in a meeting last weekend.

China's domestic stainless steel prices have weakened, due to recent drop of nickel prices. Besides, mills will have regular maintenance in the middle of the year.

It was not clear that mills will continue to cut production in August or next half year.