Stainless Steel Production Rises in Q2 2025 Amid Regional Disparities

Global Stainless Steel Production Sees 5% Growth in Q2 2025

Stainless steel production rose significantly in the second quarter of 2025, increasing by 5% compared to Q1 and 3.1% year-over-year. According to WorldStainless, part of the World Steel Association, global melt shop production reached 16.36 million metric tons (mmt) from April to June 2025.

China accounted for the lion’s share of this increase. Chinese stainless mills boosted output by 9.6% quarter-over-quarter and 3.9% year-over-year, producing 64% of the global stainless steel total. In contrast, European stainless steel production declined by 5.1% year-on-year and 4.1% compared to Q1, reflecting economic and energy-related challenges in the region.

Meanwhile, the United States also posted strong results, with Q2 output up 7.8% year-over-year and 1.1% from Q1 2025. The data highlights significant regional imbalances, as U.S. output still represents only about 5% of China’s production volume.

Regional Imbalances Shape Stainless Steel Market Dynamics

Stainless steel production trends in Asia outside of China—including India, South Korea, and Indonesia—offer mixed signals. While year-over-year output rose by 4.1%, Q2 output slipped 2.2% compared to the first quarter, suggesting oversupply concerns linked to China’s surge.

This uneven growth paints a complex global picture. The European slowdown, driven by persistent energy costs and stagnant demand, contrasts sharply with Asia’s and North America’s momentum. The continued dominance of China, producing over three-fifths of global stainless, presents both opportunity and risk for international trade flows and pricing.

Globally, first-half 2025 stainless steel output is up 4.9% compared to H1 2024. This indicates a potential recovery phase for the industry, especially in markets with robust internal demand and fewer energy cost constraints.

SuperMetalPrice Commentary:

The Q2 2025 stainless steel output report confirms a rebound in global production, but it also exposes deepening regional divides. China’s dominance remains unchallenged, but its oversupply may pressure pricing and lead to protectionist responses. Europe’s decline is a red flag, particularly as energy costs and inflation persist. Meanwhile, the U.S. continues to punch above its weight in production growth. At SuperMetalPrice, we anticipate supply-chain rebalancing and price volatility heading into Q4, with Asia’s output levels dictating much of the momentum.