Due to a high rise in production, China’s stainless steel industry is facing a problem of plenty now and the glut has caused panic in the Chinese stainless steel market. As such, a sharp fall in nickel and stainless steel prices has forced production cuts by stainless makers during the month of October. State owned and private mills are reportedly working in tandem to support falling prices. Some plants have resorted to production cuts, while others have commenced their maintenance work early. From around USD 4500pt in May 2007, the rates have declined to less than USD 3300pt. The sharp fall in prices and oversupply of stainless steel together with the rapid expansion of production capacity since the second half of 2006 has led to a substantial build up in stainless steel inventories in China.
