According to the Stainless Steel Report May 2012 issued by Germany-based service centre Damstahl, European stainless steel demand has slowed as expected in the second quarter of the current year. Besides reduced demand from stockists, demand from some end-users such as the process industry and transportation has started to slow in April and May in Europe. In general, the market situation in central Europe and Scandinavia is still far from being weak. European distributors are currently, however, in stronger price competition in order to keep market shares. This has already an impact on the price situation in the European market.
According to the report, European stainless steel crude steel production reached 2.1 million mt in the first quarter of this year, increasing 15 percent compared to the fourth quarter of 2011. However, in the period in question, stainless steel production was slightly below the volume a year ago. For the second quarter, a production level below that of the first quarter is expected by market participants.