Stainless Steel recovery underway
UK based consulting major MEPS sees a recovery in the stainless steel sector is under way. World steel production in the second half of this year will be significantly higher than in the first six months. It said that “The Asian market has started to pick up. De-stocking is coming to an end in most western nations and inventory rebuilding has commenced. We should point out that this revival is from a very low base.”
MEPS forecasts global crude stainless steel production at 21.6 million tonnes in 2009. This equates to a 16.7% reduction on the previous year’s outpu and a 23.5% decrease on the peak value in 2007. However, it represents a significant upturn in the fortunes of the industry compared to results in the final quarter of 2008 and the first three months of this year.
| Region | 2008 | 2009(F) | Change |
| European Union | 7840 | 5700 | -27.3% |
| Japan | 3405 | 1900 | -44.2% |
| United States | 1925 | 1600 | -16.9% |
| South Korea | 1585 | 1350 | -14.8% |
| Taiwan | 1285 | 1100 | -14.4% |
| Others | 2660 | 2350 | -11.7% |
| Total W. World | 18700 | 14000 | -25.1% |
| China/Russia | 7200 | 7600 | 5.6% |
| Global Total | 25900 | 21600 | -16.6% |
‘000 tonnes
F = Forecast
This follows months of production cut backs followed by recent increases in both base metal costs on commodities including Nickel,Chrome and Molybdenum.
Source Meps
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