Record high stainless steel production ahead
by David Fleschen
Last week, the steel information service provider MEPS published its new forecasts for the stainless steel market. Accordingly, this year with 52.1 million tons, around 3% more stainless steel is expected to be produced than in the previous year. China should increase its production by more than 6% to 28.3 million tons, accounting for more than 54% of world production. According to Mysteel, Chinese production actually increased by 10.5% to 22.5 million tonnes in the first nine months of the year. According to the MEPS, stainless steel production should increase by a further 4% next year, whereby here too China should make an above-average contribution with 5% growth. Further consolidation of the stainless steel industry in China could provide cost savings and added buoyancy. For example, over the weekend, three leading Chinese steel companies, whose production covers the full range of austenitic and martenitic stainless steel to nickel cast iron (NPI) products, have agreed on a strategic cooperation. High stainless steel production is likely to support the nickel price in the longer term.
Source: Commerzbank Research, Photo: Fotolia