China could increase the stainless output in 2007 after the stainless crude steel output increased by 67.7% to 5.3 million tonnes in 2006. The country commissions 2.21 million tonnes of new hot rolling capacity and 850,000 tonnes of new cold rolling capacity in 2007, according to Japan Iron and Steel Federation. The rapid expansion could result in higher export despite of the firm domestic demand. Chinese apparent stainless steel consumption increased by 14% to 5.95 million tonnes in 2006 from 2005, according to Stainless Steel Council of China Special Steel Enterprises Association. However, the export increased by 122.6% to 904,000 tonnes and the import decreased by 20.1% to 2.501 tonnes due to higher domestic production growth than demand growth. China increased the stainless hot rolling capacity by 4.51 million tonnes in 2006 from 2005 when Taiyuan Iron & Steel Group increased the capacity by 2 million tonnes along with 600,000 tonnes of new capacity each for Zhangjiagang POSCO Stainless Steel and Lianzhong Stainless Steel. The country increased the stainless cold rolling capacity by 740,000 tonnes in 2006.
Japan Steel Scrap Composite Prices (Sangyo Press)
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