China’s policy for 2026 will support demand for stainless steel

China’s 2026 government report, released during the annual session of the National People’s Congress, sets the stage for increased demand for stainless steel. The development of modern production, stimulation of consumption, and ecological modernization of the economy will play a key role in supporting the market. This is stated in the analysis by Mysteel, reports BigMint.

One of the main drivers will be the development of high-tech sectors. China is focusing on integrated circuits, the aerospace industry, biomedicine, as well as new areas such as future energy, quantum technologies, embodied artificial intelligence, neurointerfaces, and 6G. These industries require materials with high performance characteristics, which will support demand for special grades of stainless steel with high added value.

An additional factor will be the new energy vehicle segment. In 2025, their production in China exceeded 16 million units, and sales in 2026 could reach 19 million. This will contribute to further growth in the consumption of stainless steel for automotive applications.

Market support will also be provided by government programs to stimulate demand and investment in infrastructure. In particular, funds will be directed toward the renewal of consumer goods, large national projects, water management facilities, and the modernization of pipeline infrastructure. This will expand the use of stainless steel in both the domestic sector and municipal construction.

The development of hydrogen energy and low-carbon transition policies open up separate prospects. At the same time, stricter standards, quality control, and capacity optimization can accelerate the structural renewal of the industry and strengthen the positions of the largest producers.

As reported by GMK Center, global stainless steel production grew by 2.1% y/y – to 64.2 million tons in 2025. Asia increased its output by 2.7% y/y – to 55.3 million tons, with China producing 40.87 million tons (+3.6% y/y). The European Union reduced its output by 1.9% y/y – to 5.7 million tons, and the US by 7.6% y/y – to 2.1 million tons.