Power Curtailment in China Seriously Impacts on the Stainless Steel Price
Power Curtailment in China Seriously Impacts on the Stainless Steel Price
In the end of year 2021, the stainless-steel market will be pretty much influenced by China.
So far, around 20 provinces across China have experienced electricity curtailment or rationing of various levels over the past month.
Some stainless-steel manufacturers are only allowed to operate 15 days a month and many must cut their production by 50%.
This has resulted in longer lead time, higher cost and eventually increased the price of stainless steel, which is already very expensive this year.
As the world’s largest manufacturer, China doesn’t just export stainless steel material but many downstream products, if the power shortage situation in China doesn’t improve, international buyers certainly must pay more in the future.
The price of stainless steel in other Asian countries also surges radically.
YUSCO, the largest stainless steel raw material producer in Taiwan raises the price for material 304 by USD 250 per ton in October, despite Nickel price on LME has dropped. It is assumed that stainless steel price in our market will remain high in near future.