Taiyuan Iron & Steel (TISCO) and Baoshan Group are entering into the structure to reduce their production of stainless steel. Therefore, the matter, which China intends to expand production of stainless steel, is coming to a standstill and nickel stocks in China are said to have an excess but supposed to increase further by this movement in production of stainless steel. It is forecasted that China will produce more than 8 million tonnes of crude stainless steel in the calendar year of 2009, because China already produced 4.067 million tonnes in the first half of 2009. Owing to the overproduction in the first half, a tempo to increase the output of crude stainless steel in the second half of 2009 is supposed to slow down but the total quantity of crude stainless steel to be produced in China for the full year of 2009 is anticipated to be more than 8 million tonnes on an annualized base.