According to the Bureau of International Recycling (BIR), in 2010 the global production of stainless steel is likely to exceed 30 million mt compared to less than 24 million mt in 2009, with 50 percent of this output likely to be from emerging markets such as China, India, the Middle East and South America.
The forecast in February this year for global stainless steel production in 2010 was 28 million mt; however, production has recovered much faster than anticipated, with China remaining "the main driver" of stainless production growth.
However, according to BIR's Stainless and Alloy Board chairman Michael Wright, current market conditions are "fragile at best" while "great uncertainty" surrounds prospects for the third quarter. Mr. Wright said that steel mills may reduce inventories in Q3, which is usually the weakest period in the year as people go on vacation. "We are having a lot of mills telling us that their order intake has dropped. For the fourth quarter, I am more optimistic and I think there is a good possibility that demand will return," Wright said.