Due to the change of supply and demand pattern, the world stainless steel market is in a state of transformation. This leads to different production trends in different regions. In addition, pricing has moved away from the cost of raw materials.

According to the latest crude stainless steel production data from the international stainless steel forum, global stainless steel production increased by 3.4% in the first three quarters of this year compared with the same period in 2018.

However, there are big differences in these numbers. In the nine months of the survey, China's output grew by 11.7% year-on-year, compared with a 7.2% decline in EU production and a 7.5% decline in US production over the same period.

In recent years, nickel supply has been affected by trade restrictions by the governments of major producers such as Indonesia and the Philippines. Nickel is a major component of the cost of stainless steel. In addition, the demand for nickel as the main metal battery in electric vehicles has also decreased.

As a result, nickel prices soared at a time when stainless steel consumption was flat. On December 19, 2019, the cash value of nickel on the LME was 30% higher than it was a year ago. By reducing the unit cost of chromium, the factory's raw material expenditure was partially offset.

However, the transaction price of grade 304 cold rolled steel coil in Germany in December was only 2.7% higher than that in 2018. In the US, the corresponding year-on-year growth rate was 4.3%. Surprisingly, in China, where production continues to boom, the latest price is only less than 1% higher than a year ago.