The production of stainless steel is reduced intensively before and after the Spring Festival, and the impact of the production restriction of the Winter Olympic Games is limited

1. The impact of the Winter Olympics on stainless steel production is limited
According to the survey, it is expected that the 2022 Winter Olympic Games will have a certain impact on the production of stainless steel plants in the surrounding areas in February. For the time being, two stainless steel plants in Shandong have plans to reduce production, but no specific notice has been received. The first steel plant plans to stop production for 15 days in February, which is expected to affect the output of 300 series crude steel by 15000-20000 tons (its blast furnace has not been opened yet); The second steel plant is expected to reduce production appropriately in February, and the output of stainless steel crude steel may be reduced by half, about 20000-30000 tons of 400 series stainless steel.

2. Reduction of domestic stainless steel production in the first quarter of 2022
According to the survey, by the end of December, many domestic stainless steel plants had planned to reduce production in January and February 2022. It is preliminarily estimated that the domestic crude stainless steel production in January will be reduced by 500000-560000 tons compared with the normal production, and the crude stainless steel production in February will be reduced by 340000-380000 tons compared with the normal production.

Summary: at present, the impact of the Winter Olympics on stainless steel production is limited. Some stainless steel plants in Beijing and around Hebei, such as Shandong Province and Henan Province, will have plans to reduce production. However, due to the very limited stainless steel manufacturers in the region, the Winter Olympics will have little impact on stainless steel production. However, January and February 2022 will be the period of centralized maintenance and production reduction of domestic stainless steel plants. One of the reasons is the weak consumption before and after the Spring Festival, and the high production cost and meager profit of steel plants are also important factors.