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Looking around the present situation of stainless steel market in China

Looking around the current situation of China's stainless steel market, in the face of the continuing weakness of downstream demand, traders in order to ship, the price war is intensifying. This persistent vicious circle has led to continuous losses in steel mills, but steel mills are by no means the lambs to be slaughtered. Recently, the mainstream steelmakers headed by Taiyuan Iron and Steel Co. have lowered their stock prices in July, making them close to market quotations.

The growth rate of stainless steel production in China has shifted from high-speed growth in 2010 to a sharp decline, while the situation faced by stainless steel enterprises in 2012 is still difficult. In terms of total production capacity, China's total stainless steel production capacity has reached 20.4 million tons in 2011, while the actual output is 12.5 million tons. The utilization rate of production capacity is only about 61.3%, which is far below the level of 84% in the steel industry.

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