China’s Tsingshan Holding Group, the world’s largest stainless steel producer, has reportedly suspended part of its stainless steel production at the Morowali Industrial Park in Sulawesi, Indonesia. 

According to sources, the production lines were halted in May for maintenance, with no set timeline for resumption. A cold-rolling mill in the same park also stopped operations due to raw material shortages. This move reflects weakening global demand and ongoing trade uncertainties. 

In 2024, Tsingshan accounted for nearly one-third of global stainless steel output and remains a top nickel producer. Analysts view the output cut as a strategy to support stainless steel prices, which, along with nickel, hit five-year lows in April. However, it may also reduce nickel demand.