Because of the higher import price of stainless scrap and weak demand for stainless steel, major stainless steel mills in China plan to reduce their output in May 2008.

The reduction plan will have a huge effect in the raw material market, and the price of stainless scrap will drop, according to an analyst. Concerning holidays in May 2008, the output reduction will reach 30%.

It is reported that a stainless steel mill was asking for a price cut of JPY 30,000 per tonne for Japanese scrap, but its attempt was unsuccessful.