Because of the higher import price of stainless scrap and weak demand for stainless steel, major stainless steel mills in China plan to reduce their output in May.

The reduction plan will have a huge effect in the raw material market, and the price of stainless scrap will drop, according to an analyst. Concerning holidays in May, the output reduction will reach 30 percent.

It is reported that a stainless steel mill was asking for a price cut of ￥30,000/ton for Japanese scrap, but its attempt was unsuccessful.