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| Global stainless steel melt shop production |
Asian Mill Output Drives Global Melt Production Growth
Global stainless steel melt shop production expanded significantly during the first half of 2026. Data published by the World Stainless Association indicates total global volume reached 33 million metric tons. This represents a 5 percent increase compared to the same period in 2025. Asian steelmakers spearheaded this regional expansion by manufacturing 28.3 million metric tons of molten steel. Consequently, Asia consolidated its market dominance by accounting for more than 85 percent of overall global volume. Regional production, led primarily by Chinese mills, rose 6.1 percent year-on-year. This growth rate comfortably outpaced the global average expansion rate.
China and United States Mills Expand Second Quarter Volumes
Chinese stainless steel production maintained a strong upward trajectory despite persistent international criticism regarding capacity expansion and government subsidies. Chinese melt shops generated over 11.2 million metric tons in the second quarter of 2026 alone. This output marks a 14 percent rebound from the first quarter's seasonal holiday slowdown. Furthermore, second-quarter production increased 3.9 percent compared to the same period last year. Conversely, European Union production contracted 3.7 percent year-on-year to 2.9 million metric tons. Meanwhile, United States output expanded 2.3 percent to 1.1 million metric tons. American mills produced 582,000 metric tons in the second quarter, relying heavily on scrap feedstock.
ScrapInsight Commentary
The persistent expansion of global stainless melt capacity—particularly across Asian manufacturing hubs—underlines robust underlying demand for nickel and scrap metallics. United States producers are successfully leveraging higher scrap utilization rates to secure resilient operating margins. However, European structural contraction highlights a widening competitiveness gap that could redirect global secondary raw material flows toward high-growth Asian markets.
