Looking at the week's movements in the
stainless steel markets, we see that market players have started to adopt a wait-and-see attitude so as to be able to better perceive the state of the market. Sales keep rising in the
stainless steel market, which is following a general stable trend, boosted by the industry revival based on the favorable weather conditions. Despite the high price levels, there has not been any slowdown in demand. The industry closely follows the movements in nickel prices, which have dropped below the $40,000 level, hitting $39,800 in the last two days.
With regard to
Russia, we still see the effects of 2006 in the current year.
Stainless steel demand in 2006, which reached 250,000 tons, has strengthened the local market. In
Russia, where
stainless steel
production totaled 120,000 tons in 2006, the industry is expected to improve further in the upcoming years. In particular, the
construction, machine, air plane and nuclear energy industries - high value added industries where
stainless steel is widely used - are expected to improve.
Similarly,
stainless steel demand and
investments have increased in
China in parallel with economic development. Although
China, which has become one of the major
stainless steel producers in the world, has increased its exports, it still imports
stainless steel in areas that require high quality materials. However,
China has become the center of attention especially for the
Middle East and the EU. The No.1 alternative to the high-cost European-origin materials is now Chinese-origin
production.
200 series and other alternative products have a larger market share than other
stainless steel products in
India. This is due to the prevailing poverty in most regions of the country and the low per capita income - despite the process of development observed in the country. The more the Indian economy grows, the more the demand will increase for high value-added
stainless steel products. Since
stainless steel prices are hovering at high levels throughout the world, the demand for
stainless steel products with lower nickel content – which are largely produced in
India - has increased significantly.
With regard to
Turkey, Chinese products have a greater advantage than the European-origin materials. While sales have started to be concluded for 400 series and 200 series materials in
Turkey, due to high European prices many industries in the country have started to look for supplies of products from
China. On the other hand,
India reigns in the Turkish market in terms of
stainless steel bars. The general situation as reported from the Arab countries indicates that sales are mostly being concluded from
India and
China.