It is reported that some East Asian stainless steel producers are considering switching some of their capacity to produce carbon steel as the sluggishness in the stainless steel market shows little sign of abating.

As per report the carbon steel market is currently more profitable than the stainless market.

However, a Taiwanese stainless steel producer said that the biggest challenge is to establish effective sales channels for carbon steel. Some mainland Chinese stainless mills have been increasing carbon steel production after being forced to cut stainless production.

Stainless steel prices in East Asian have declined by more than 4% from mid May and business remains very quiet. Traders said that it is difficult to predict the market in the months up to, and even after, August.