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| Stainless Steel Production |
Stainless steel output strengthens on Chinese growth; Europe lags behind
Global stainless steel production rose by 5% quarter-on-quarter in Q2 2025, reaching 16.36 million tons, driven largely by strong gains in China. According to the World Stainless Association, output also climbed 3.1% year-on-year, reinforcing the material's resilience amid volatile economic conditions.
China, the world’s dominant stainless steel producer, led the recovery with 10.54 million tons produced—up 9.6% q/q and 3.9% y/y. In contrast, Europe’s output dropped 4.1% q/q and 5.1% y/y, falling to 1.54 million tons. The United States showed modest but steady growth, producing 559,000 tons in the quarter, up 1.1% q/q and 7.8% y/y.
Regional trends shape global stainless steel dynamics
China’s performance reinforces its pivotal role in the global stainless steel supply chain. Meanwhile, Asia (excluding China and South Korea) produced 3.49 million tons, marking a 2.2% q/q decline, but still up 4.1% y/y. These figures suggest regional demand resilience, especially from Southeast Asia’s construction and manufacturing sectors.
Conversely, Europe’s continued contraction highlights weak industrial activity and high energy costs. The U.S. market remained stable, underpinned by automotive and infrastructure demand. Other producers—including Indonesia, Brazil, South Africa, South Korea, and Russia—saw modest gains, collectively increasing output by 1% q/q and 2.9% y/y, totaling 225,000 tons.
Market outlook amid shifting global production
In 2024, global stainless steel output reached 62.621 million tons, reflecting a 7% y/y increase. China produced 39.44 million tons, up 7.5% from 2023, while Asia excluding China and South Korea added 7.32 million tons, marking 6.4% growth. The U.S. and Europe also contributed positively, with annual growth of 6.9% and 1.5%, respectively.
Looking ahead, the Q3 and Q4 trajectory depends on macroeconomic stability, Chinese infrastructure stimulus, and raw material pricing—notably nickel and ferrochrome. Trade policies and carbon border adjustment mechanisms (CBAM) in the EU could further influence regional production strategies.
ScrapInsight Commentary
China’s strong quarterly rebound cements its central role in stainless steel supply, while Europe’s decline raises long-term competitiveness concerns. Future market dynamics will hinge on nickel supply, regulatory changes, and demand recovery in key sectors like construction and mobility.
