Damstahl: European stainless steel output falls in Q3 from Q2

According to the Stainless Steel Report December 2012 issued by Germany-based service center Damstahl, European stainless steel crude steel production was around 1.6 million mt in the third quarter of the year, falling from 2 million mt recorded in the second quarter of the year. However, the production level is up two percent compared to the same quarter of the previous year. In the first nine months of 2012, European stainless crude steel production reached 5.7 million mt.
 
According to Damstahl, the European stainless steel market does not show signs of an improvement, and demand from both end-users and stockholders has no any clear direction at the moment.
 
Damstahl estimates that there is not much dynamic present in the most important stainless steel end-use segments in Europe, including the process equipment, automotive and construction sectors. The outlook for the next months remains weak, but there are several indications that demand from end-users will improve as 2013 progresses. Damstahl noted that it is expected that the oil and gas industry will grow at double digit rates in Europe next year. Also according to the Damstahl report, the German Mechanical Engineering Federation (VDMA) expects a growth of at least two percent in production of process equipment in 2013.