Chinese companies’ ramping-up production of stainless steel is pushing them to deliver new production highs as many reported healthy performance in H1 on the back of strong Q2. China’s economic recovery was quick and several fiscal stimulus helped the stainless steel industry.
Beibu Gulf New Material Refining said that they have achieved full capacity of producing and exceeded monthly target output. Refining capacity has reached 292,000mt while output of hot rolling has reached 301,000mt, solids has reached 302,000mt and the total output of stainless steel has reached 96,000mt, according to the company.
China-based stainless steel producer Minmetals Development clocked 2.48pc growth in H1 in operating income at CNY27.91bn from the prior year. Net profit rose by a whopping 63pc to CNY149.52mn from the same period in 2019. Net cash flow from operations was approximately CNY840mn, up 58pc from the prior-year.
China’s stainless steel companies have mostly reported strong H1 performance on the back of high demand from end users and the country’s strong economic revival. China’s GDP growth stood at 3.2pc in Q2 2020.
Chinese companies suffered production loss mostly in Q1 (Jan-March) while in Q2, they had to make-up for the loss which resulted in a strong first half of the year.
($1= CNY6.82)