Chinese Stainless Steel Output Surges Amid Trade Shifts
China continues to lead the global steel market. In the first half of 2025, its stainless steel production reached 20.2 million tonnes. That figure marks a 5.2% increase compared to the same period in 2024. The Stainless Steel Council under the China Iron and Steel Association provided the data.
The breakdown shows 10.3 million tonnes of 300 series stainless, 3.8 million tonnes of 400 series, and 5.85 million tonnes of 200 series. Duplex grades made up the remaining 235,000 tonnes.
Despite this output growth, China’s stainless steel imports fell by 25.3% year-on-year, totaling 8.28 million tonnes. At the same time, exports rose by 5.7% to reach 2.50 million tonnes. This trend highlights China’s stronger push toward outbound trade.
HBIS Group strengthened its production capabilities in Henan. In August, it commissioned a new continuous caster at its Wuyang plant. The unit can produce one million tonnes of ultra-thick slabs per year. It rolls slabs ranging from 370mm to 460mm thick and 1,600mm to 2,500mm wide. Primetals Technologies, the contractor, described it as the most powerful caster of its kind worldwide.
Tsingtuo Group is also expanding. It signed an agreement with the district government in Chongqing’s Fuling area. The company will invest USD 280 million to build a new stainless processing plant. The facility will have a 700,000-tonne annual capacity. Once fully operational, it is expected to generate USD 1.4 billion in yearly output value.
These moves reflect China’s strategic focus. The country aims to lead in advanced stainless steel and ultra-thick slab production.
Trade Defence Tightens Across Asia, Europe, and North America
Across the steelmaking world, governments are implementing fresh trade defence measures to counteract import pressures. In South Korea, the Korea Trade Commission recommended antidumping duties on Chinese and Japanese hot rolled flat products, with proposed rates reaching up to 33.57%. The move follows a formal complaint by Hyundai Steel earlier this year.
Meanwhile, Japan initiated an investigation into hot dipped galvanised coil imports from China and South Korea. The complainants, four major Japanese producers, argue that imports have been sold well below normal value since 2022—up to 40% in the case of Chinese-origin material. These investigations mark a growing regional alignment against perceived unfair trade practices.
In the EU, ArcelorMittal has paused its EUR 1.8 billion hydrogen-based DRI project in Dunkirk, citing high energy costs and CBAM-related delays. However, the company still plans a EUR 1.2 billion electric arc furnace at the site, pending final investment approval. The European Commission also introduced tighter scrap trade surveillance and revised safeguards, particularly targeting Category 17 products. Meanwhile, Finland-based Outokumpu reported a EUR 21 million operating loss, despite delivering 483,000 tonnes of stainless steel in Q2 2025—a 3.2% year-on-year rise.
Canada revised its steel tariff-rate quotas, applying a 50% duty on imports above new quarterly limits. These cover 23 categories, excluding partners like the U.S. and Mexico. Notably, carry-over of unused quotas will no longer be permitted, creating stricter controls moving forward.
SuperMetalPrice Commentary:
The global steel capacity trends in 2025 paint a clear picture: production is accelerating in key regions like China, while trade defence mechanisms are becoming more assertive across Asia, Europe, and North America. Strategic investments by Chinese producers signal continued upstream integration, while Western steelmakers face regulatory, cost, and trade challenges. The divergence between rising output and declining profitability, especially in Europe, could lead to further consolidation and realignment in global supply chains. For stakeholders, agility in navigating shifting policy landscapes will prove critical as markets brace for increased volatility through 2026.
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