Chinese stainless steelmakers were expected to increase output in March, further supporting nickel pig iron prices and putting pressure on ferrochrome suppliers to lower prices to balance raw material costs.

Stainless steel crude steel production was expected to reach 3.5 million tons in March, an increase of about 357,000 tons from February. The output of 300 series stainless steel would increase by 14.9% to 1.9 million tons, that of 200 series would increase by 6.3% to 976,300 tons, and that of 400 series would rise by 9.2% to 625,000 tons.

Despite rising production, the market is pessimistic about stainless steel prices in March due to weak demand. However, for the long-term outlook, the Chinese government was expected to introduce policies to stimulate demand, which could boost demand for stainless steel.