A slowdown in China's industrial manufacturing and property sectors will soon lead to an increase in the global export of stainless steel, according to Steel Guru's newsletter on Monday.

Data from the news outlet revealed that China is already exporting at an average of nearly 9 million tonne per month during the first quarter. It also revealed that the country's exports had grown by 32.6 percent to 34.31 million tonnes year-over-year. But with Chinese steel use foreseen to drop by as much as 6 percent this year, it's possible for the market to suffer with additional volumes as Chinese mills scramble to get rid and make money off the surplus.

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But the China Iron and Steel Association is looking on the brighter side of the news. "China's steel exports will remain competitive and are unlikely to fall much this year, as low prices and firm demand offset the scrapping of an export tax rebate on certain products. There is still demand in international markets and there is a price gap between steel at home and abroad. Chinese steel exports are still competitive and will not drop by a large amount," CISA was quoted as saying by Steel Guru.

As a result of this surge in exports, prices are sure to decline and more trade barriers among countries may be implemented to limit the entry of these excess steel volumes. Korea, Japan and India are likely to be impacted by an inflow of volumes and hinge on domestic demand to pick up for profitability.

In Europe and North America, stainless steel demand is seen to grow modestly but inventories are still overflowing in both regions, brought on by a dip in nickel price. "Combined with successive months of declines in nickel prices, service centers are only purchasing what is absolutely necessary. Both domestic mills and Asian mills have robust North American inventories, a stark contrast from a year ago when lead times went beyond the standard six to eight weeks, causing service centers to seek alternative sources," stated AG Miner in a report.

German stainless distributor Damstahl also noted in a separate report that market dynamics in the European stainless steel market is "overshadowed by weak nickel prices but with longer delivery times as a positive sign."

Amur Minerals Corporation (OTC:AMMCF), a mineral resource and development company with a project in the Russian Far East, is one of the companies expected to be one of the top producers of nickel globally. After upgrading its reserves by as much as 25 percent, the company's Kun-Manie mine in the Amur Oblast region was hailed as one of the top 20 nickel-copper sulphide projects in the world, according to a separate Proactive Investors report. The company said it had upgraded its ore reserves from 31.5 million tons to 39.2 million tons of ore containing 219,000 tons of nickel and 58,100 tonnes of copper, representing a rise of 28 percent and 22.3 percent.

Tagsstainless steel market in China, stainless steel supply in China, China's stainless steel exports, China's stainless steel surplus, stainless steel surplus, stainless steel supply and demand, stainless steel in Europe, stainless steel in North America, Damstahl, Amur Minerals, Amur Minerals Corporation, Amur Oblast, Kun-Manie