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News Release from: MEPS (International) | Subject: Stainless steel statistics
Edited by the Engineeringtalk Editorial
Team on 04 November 2005
Stainless crude steel production trends
analysed
Global stainless crude steel production is expected to reach 25 million tonnes this year and forecast at 26 million tonnes in 2006, according to MEPS (International).
Global stainless crude steel production is expected to reach 25 million tonnes this year and forecast at 26 million tonnes in 2006, according to MEPS (International) Expansion in 2005 is expected only in China and India
This article was originally published on Engineeringtalk on 8 Nov 2005 at 8.00am (UK)
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Decreases are anticipated in most industrialised nations.
Production is predicted to decline in the European Union (EU) by 450,000 tonnes this year as the mills cut back output in an effort to prop up prices.
A modest rise to 8.65 million tonnes is forecast for 2006 as inventories reduce and consumption picks up once again.
The situation in Japan mirrors that in the EU - with a 100,000 tonne projected fall in 2005 followed by a pick up in 2066 as the supply and demand become more in balance.
The picture in South Korea is very similar.
Output will be lower in 2005 as oversupply affects the market and producers cut production.
In 2006, a modest revival is anticipated as inventories and consumption return nearer equilibrium.
The curbs to supply in the second half of this year should assist this difficult market condition in Taiwan.
In the USA, demand held up reasonably well for most of this year.
The market in the final quarter is weakening but should not be sufficient to push output in 2005 significantly below the previous year's outturn.
A small improvement is expected in 2006.
No growth in output is anticipated in the 'others' category in 2005.
Firm local demand should push up Indian production.
No gains are expected in Brazil or Canada due to poor domestic consumption.
Weak exports will stifle supply by the South African mill.
We estimate that Western World stainless production this year will be 650,000 tonnes (3%) below the outturn in 2004 - which was not sustainable given real market demand in most countries.
A 3.5% increase is forecast for 2006 as oversupply reduces.
Chinese production is expected to expand by more than 1 million tonnes in 2005 as new capacity comes on stream and recently installed units move up to realistic utilisation rates.
Russian supply will be lower.
Chinese output growth is likely to slow in 2006.
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