Category Archives: Stainless Steel Production

Global Growth In Stainless Steel Output To Continue

Worldwide crude stainless steel production, in 2017, reached an all-time high total of nearly 48.1 million tonnes. This represents an increase of 5 percent, compared with the year earlier figure. MEPS predicts that global output will grow by a further 5 percent, in 2018, to achieve a new record high mark of around 50.5 million tonnes.

USA

The introduction of tariffs or quotas, arising from the United States’ Section 232 action, is likely to alter the patterns of trade between the major stainless steel producing countries. Output in the United States grew by a healthy 11 percent, year-on-year, in 2017. We forecast more moderate expansion, this year.

South Korea & Taiwan

Production in South Korea and Taiwan continued its recovery, having slumped, following the Global Financial Crisis of 2008/9. Output increased by 6 percent, last year, in South Korea, to total 2.4 million tonnes. In Taiwan, production grew by nearly 9 percent, compared with the year earlier figure, to reach almost 1.4 million tonnes. Both countries are expected to record increases of around 4 percent, year-on-year, in 2018.

EU & Japan

Growth is more moderate, in the traditional stainless steelmaking centres of Japan and the European Union. Production increased at a modest pace in both markets, in 2017. Expansion is predicted to continue at a similar rate, in both places, this year.

China

In China, the annual growth rate in stainless steel supply slowed, to 4.7 percent, in 2017, after years of rapidly increasing output. Nevertheless, at 25.8 million tonnes, the country produced over 53 percent of the world’s crude stainless steel, last year. A further increment, of around 4 percent, year-on-year, is forecast for 2018.

Stainless steel production continues to climb most steeply in the “Others” category. India is becoming a major part of the global supply chain, while a new facility in Indonesia, commissioned last year, will also contribute significant tonnages, in the future.

Source: MEPS Stainless Steel Review

 

Section 232 Probe Creates Chaos In Global Steel Industry

Further Stainless Steel Price Rises Imminent in the US After Section 232 Announcement

In February, US stainless steel prices increased for both flat and long products. Rising mill input costs resulted in moderate gains in stainless steel transaction values, worldwide. However, the price hikes recorded in North America were more substantial than those in other regions. No doubt, the upward trajectory witnessed over recent months can be attributed, at least in part, to concern surrounding the outcome of the Section 232 investigation.

The growing cost of nickel, chromium and molybdenum will, almost certainly, put further upward pressure on stainless steel transaction values, through to the second quarter of this year. Rises in alloy surcharges have been announced for March deliveries and additional increases are anticipated for those in April. Moreover, reductions in basis price discounts are expected, in the near future, as local producer confidence grows, following Thursday’s Section 232 announcement.

The statement last week, by President Donald Trump, of a 25 percent tariff on all steel imports, has been met with a mixed response by the local market. Whilst domestic steel manufactures are praising Mr Trump for his decision, buyers in the downstream supply chain have concerns regarding the potential for a shortfall in supply, as well as further price increases. Discussions of counter measures by representatives of countries, worldwide, are already emerging. The risk of a trade war looms.

Source: MEPS International Ltd

Strong Growth in World Stainless Steel Output to Continue

Annual global crude stainless steel production for 2017 is estimated to have totalled an all-time high of around 48 million tonnes, which represents a year-on-year increase of 4.9 percent. MEPS forecasts a further rise in worldwide outturn of nearly 5 percent, in 2018, to a new peak of 50.3 million tonnes.

Recently-issued official Chinese output figures were significantly higher than earlier expectations. The annual total at close to 26 million tonnes represents 54 percent of global crude stainless steel production. A further escalation of around one million tonnes is predicted, in China, in 2018.

Crude stainless steel output continued its strong recovery in Taiwan, in 2017. The estimated outturn of 1.375 million tonnes equates to an upturn of nearly 9 percent, compared with the year earlier figure. More moderate growth of around 4 percent, is anticipated for this year.

South Korea production also developed strongly, last year. The estimated annual total of 2.4 million tonnes represents an increase of nearly 6 percent, year-on-year. Further, steady expansion, of around 4 percent, is predicted for 2018.

Japanese crude stainless steel output, in 2017, is projected to be 3.15 million tonnes, which amounts to a moderate increase of just under 2 percent, compared with the previous year’s total. A similar rate of growth is forecast for this year.

Recovering industrial activity helped stainless steel output, in the United States, to expand by around 8 percent, in 2017, to reach a total of around 2.7 million tonnes. However, demand eased, in recent months, and MEPS’ forecast for growth, in 2018, is more conservative, at less than 2 percent.

Output in the European Union continues to recover at a slow but steady rate, of around 2 percent per year. An outturn of 7.4 million tonnes is estimated, for 2017. A further increase, of 150,000 tonnes, is predicted for 2018.

Crude stainless steel output is expanding more rapidly in a number of countries in the “Others” category. New production capacity, notably in India and Indonesia, contributed to estimated growth of more than 12 percent, in this group of countries, in 2017. As steelmaking at these new facilities ramps up, a substantial upturn, of around 20 percent, is predicted for this year.

Source: MEPS – Stainless Steel Review – January 2018 Issue

MEPS Predicts Record High for Global Stainless Steel Production in 2017

MEPS forecasts that world crude stainless steel output will reach an all-time high of 47.5 million tonnes in calendar year 2017. This would represent a 3.8 percent increase on the previous record figure, set last year. MEPS expects continued growth in global production in 2018. A new peak volume of 49 million tonnes is forecast for next year.

China’s outturn during the second quarter was lower than MEPS’ previous estimate, as mills cut back production, in an effort to comply with the government’s environmental targets. Recently published statistics by the China Stainless Steel Council indicate that output recovered strongly, in the July/September period.

Crude stainless steel production, in Japan, is foreseen at 3.125 million tonnes, in total, this year – an increase of just one percent, compared with the 2016 figure. MEPS’ forecast for 2018 is for the addition of a further 50,000 tonnes.

Output in South Korea is expected to develop strongly, this year, after a moderate performance, in 2016. Growth of nearly 5 percent, to a total of 2.375 million tonnes, is anticipated for this calendar year. A similar scale of expansion is predicted for next year.

Taiwan’s robust recovery continues. After recording a rise of nearly 14 percent, last year, the country’s annual outturn is forecast to increase by a further 9 percent, in 2017. Another strong result, with around a 7 percent rise, is foreseen in 2018.

Output in the United States, during the second quarter, was higher than MEPS’ previous estimate. As a result, MEPS has upgraded its forecast for the 2017 annual total, to 2.75 million tonnes. This would equate to a year-on-year increase of more than 10 percent. MEPS anticipates moderate growth, of around 100,000 tonnes, next year.

Production in the European Union, during the three months from April to June, turned out to be slightly lower than had been anticipated. MEPS has, consequently, revised its expected total, for 2017, downward, to 7.35 million tonnes – an increase of less than one percent, compared with the outturn in the previous twelve months. European mills are expected to be busier, in 2018, than in the current year. MEPS predicts an annual output of around 7.5 million tonnes, next year.

Source: MEPS – Stainless Steel Review – October 2017 Issue

GLOBAL STAINLESS STEEL OUTPUT TO EXPAND IN 2017 TO NEW RECORD HIGH – MEPS

Worldwide crude stainless steel production, in 2016, reached an all-time high total of nearly 45.8 million tonnes. This represents an increase of more than 10 percent, compared with the year earlier figure. MEPS predicts that global output will grow by around 3.75 percent, in 2017, to achieve a new record high mark of around 47.5 million tonnes.

Outturn in all of the long-established stainless steelmaking countries increased, year-on-year, in 2016, after most had recorded a contraction in the previous twelve months. Production continued to grow, strongly, in China and in the developing nations.

Despite earlier expectations that stainless steel output growth, in China, would slow down, rapid expansion continued, in 2016. The country’s official annual total was reported at nearly 25 million tonnes – an increase of more than 15 percent, compared with the previous year. This equates to almost 55 percent of the world aggregate figure. With antidumping measures, in many countries, restricting global exports, China has recently made moves to curb its rate of expansion.

After a slight dip, in 2015, production in the United States returned to its trend of robust growth, increasing by more than 6 percent, last year, to total around 2.5 million tonnes. MEPS predicts that output will expand by a further 2 percent, in 2017.

Crude stainless steel production recovered strongly, in Taiwan, in 2016 – increasing by almost 14 percent, year-on-year, to exceed 1.25 million tonnes, for the first time since 2010. More moderate growth is forecast for this year.

Annual outturn advanced by between one and two percent, in the EU, Japan and South Korea, last year. Further, steady expansion, of a similar magnitude, is foreseen, in these markets, in 2017.

Source: MEPS – Stainless Steel Review – April Issue

GLOBAL STAINLESS STEEL PRODUCTION SET FOR NEW HIGH IN 2017 – MEPS

Annual global crude stainless steel production for 2016 is estimated to have totalled an all-time high of around 45.5 million tonnes, which represents a year-on-year increase of 9.5 percent. MEPS forecasts a further rise in worldwide outturn of around 4 percent, in 2017, to a new peak of 47.3 million tonnes.

Recently-issued, official Chinese output figures were significantly higher than earlier expectations, despite reports of plant closures. Output in other emerging economies continues to expand more quickly than in most of the traditional stainless steelmaking countries. However, production in Taiwan, where output has been at a historically low level in recent years, is estimated to have grown by over 10 percent, in 2016, compared with the year earlier figure. In the United States, last year’s outturn grew strongly, exceeding the previous year’s total by more than 4 percent.

In Japan and South Korea, last year’s production is estimated to have fallen slightly below the 2015 totals. Moderate increases are forecast, for both countries, in 2017. Output in the European Union, in 2016, was approximately 2 percent more than the year earlier figure. A further, marginal expansion is expected, this year.

Source: MEPS – Stainless Steel Review – January Issue