According to the Stainless Steel Report October 2012 issued by Germany-based service center Damstahl, European stainless steel production was around 4.1 million mt in the first half of 2012, slightly below the same period of 2011.
In the European market, stainless steel demand from distributors and end-users remained comparatively quiet after a strong start in 2012. The euro zone problems hampered end-user activity in recent months, while stockholders remained hesitant to order at falling nickel prices until the middle of August. Nickel prices have increased substantially since then, reaching a level of some $18,000/mt by the end of September.
According to the report, stainless steel consumption of end-users in some segments like the automotive industry, other transport (including shipbuilding, trucks and railway equipment) and domestic appliances will remain below the levels recorded last year in the third and fourth quarters of 2012. Meanwhile, European mills will continue to reduce costs - all of them have to react to weak order intake in recent months and non-satisfactory long-term growth in the saturated European market.
Damstahl also noted that stainless steel demand from China became softer in recent months, while exports of its stainless finished products to Europe dropped as well. However, it is expected that Europe will remain an important target for Chinese deliveries in the medium term.