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The current situation in the global stainless steel market is sad

As has been said recently in a statement the agency «Platts», general secretary of the «Stainless steel Forum» (ISSF) John Rowe in its latest assessment of the situation in the market of stainless steel given the prospects of its development pessimistic assessment. According to this analyst, the release of a corrosion-resistant metal varieties becoming more and more low-income sector of the steel industry.

Since the beginning of the 80s of the last century, the demand for stainless steel increased annually by not less than 5.5%. This is a good result, particularly in comparison with the 2.5% increase for other steel grades, and from 3.2% — aluminum. Previously, manufacturers kept growing demand moderate increase in production volumes. But now the market is a different situation: the growth rate of the volume of production of stainless steel are preserved, and product sales figures thus degraded.

On expectations of experts, this year the issue of global stainless steel is projected at 37.8 million. Tons (an increase of 4% over 2012 figures), and in the 2014th will reach 40 million. Tons per year (+ 6%). Provided that such an increase will not receive support consumer demand, the market generated a surplus of stainless steel, which is fraught with even more drastic drop in prices in the sector. John Rowe said: «The situation in the industry is compounded by the fact that some market players suspended overcapacity and perform the work under minimum load while others produce the metal to the max and export surplus goods». «One of the ways to market resuscitation experiencing a surplus of production — its restructuring. And if you do not take action in this regard — the global stainless steel production industry will receive a heavy blow «- the expert believes.

According to previously published ISSF data, in the first three months of 2013 9.4 million. Tons of stainless metal produced in the world. This is more than the same period last year by 6%. The majority-producing countries has reduced the rate of production (for example, in Eastern Europe, was released on 3% less metal this category, in Africa and Western Europe — 2.8 percent, in Asia (except China) — by 3.6% less). At the same time, manufacturers of stainless steel from China showed positive dynamics: their data on the production of metal by 18.3% more than last year.

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