According to the latest ‘Stainless Steel Briefing January 2011' report issued by Germany-based service centre Damstahl, in 2011 European stainless crude steel production was 7.6 million mt, rising two percent compared to 7.4 million mt in 2010.
Stainless crude steel production in the fourth quarter of the year increased 15 percent compared to the previous quarter, contrary to negative expectations for the European market.
Meanwhile, Damstahl said that European mills are basically optimistic for the first quarter of 2012, expecting increasing surcharges as well as base prices, which would enhance their profitability. It is expected that stainless steel demand in Germany, Sweden, Denmark and Norway will grow above the European average in 2012.
According to the report, it is expected that real stainless steel demand in Europe will grow by only one or two percent in 2012. Transportation (especially automotive) is the only segment with a certain risk of a substantial downturn this year, with some analysts expecting a five percent drop. A slight drop is also expected for the building/construction sector. Industrial demand will provide further growth of three percent for stainless use amid a softer economic environment, while consumer goods are expected to see one percent growth in 2012.