Reportedly, the output of stainless steel in China could oversupply about 4 million tons by the end of 2015. So far, the Chinese stainless steel market suffers serious stagnancy as a result of the sharp fluctuation in nickel price and weak demand from downstream buyers.
The Iron ore market is expected to be affected deeply after decreasing demand for stainless steel has shrunken the shipment of iron ore and made heavy slump in the iron ore prices.
China focused on stainless steel export as 240,000 tons in May. It still attempts to release its output by bulk of export with micro profit.
However, with eliminating outdated industrial capacity by Chinese government, it is expected that the stainless steel market in China will become mild oversupply in next few years.