Beware of cheaper stainless steels
A
MEPS (International) product story
Edited by the Engineeringtalk editorial team
May 31, 2005
Firm evidence has now emerged of the extent to which high nickel prices are causing substitution of austenitic stainless steels by other materials on a global basis, according to MEPS.
Firm evidence has now emerged of the extent to which high nickel prices are causing substitution of austenitic stainless steels by other materials on a global basis, according to MEPS Stainless Steel Review.
Recent signs from Japan indicated rising demand for nickel-free ferritic grades and falling demand for nickel-bearing austenitics.
This has now been supplemented by global figures showing a trend away from costly austenitics and towards chrome-manganese grades.
Statistics from the recent meeting of the International Stainless Steel Forum show that production of chrome - manganese steels has more than doubled in the last four years.
In 2001 they accounted for 5.3% of world stainless production, or 1.02 million tonnes.
By 2004, however, their share had risen to 9.3%, equivalent to 2.29 million tonnes and an increase of 125%.
Conversely, austenitic (chrome-nickel) grades - which historically have accounted for over 70% of production - fell to only 66% in 2004.
The share of ferritic grades has been virtually static at between 22 and 23%, according to the ISSF figures.
While much of the 200 series (low-nickel/chrome-manganese) material is being produced in India and China, producers elsewhere are also interested.
Serious research and development work into manganese-bearing stainless steels is known to be going on in Europe and probably elsewhere.
For applications where high corrosion-resistance is not critical, 200 series materials offer an increasingly affordable choice.
Taking the US market as an example, the alloy surcharge on type 304 flat products containing 8% nickel has increased by about 10% since the start of this year; but the surcharge on type 201 (3.5% nickel) has come down.
At about 35 cents per pound, the current alloy surcharge on type 201 is barely more than half the surcharge on 304.
However, such applications are quite restricted in number.
Some of the growth in chrome-manganese stainless appears to be the result of users choosing it simply because it is cheaper - and only finding out later that it was not suitable for the job.
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