China to keep 6% stainless steel consumption growth

China to keep 6% stainless steel consumption growth

Canada-based Hatch Consulting suggests that China will maintain a 6% annual growth rate for stainless steel demand over the next ten years. Senior consultant Terance Ko, speaking at the 6th Asian Ferro Alloys Conference, expressed that even though current stainless steel demand is increasing slowly at the moment, by 2010 China’s stainless steel demand could reach 6.5 million tons. Such demand would make China the third-largest stainless steel consumer in the world. Market demand for stainless steel will mainly center on 200 series and other non-nickel stainless steel. 200 series stainless steel was developed during World War II when nickel resources were quite tight and prices were high, very similar to the current market situation. In 2004, China’s stainless steel demand reached 4.5 million tons, accounting for 45% of Asia’s total demand as well as 23% of the world’s. From 2001 to 2003, China’s stainless steel demand doubled from two million tons to four million tons, equaling the demand of Japan. China is currently a net stainless steel importer. The country’s total import quantity reached 2.5 million tons in 2004. China’s reliance on imports will lessen as new stainless production lines begin operation. Over the next three years, China’s stainless steel making capacity will likely double, making the country the world’s number one stainless steel manufacturer.