In the first nine months of the current year European stainless crude steel production declined by almost six percent year on year to 5.4 million mt, according to the Stainless Steel Report December 2013 issued by Germany-based service center Damstahl.
During the first nine months, stainless steel production continued to fall strongly in Germany, with a decrease of 14 percent, while Sweden registered a seven percent decrease and Slovenia recorded an increase of 14 percent, all on year-on-year basis.
According to the report, it is expected that real demand for stainless steel in Europe will decline by around 2.5 year on year percent in 2013. As also seen in the previous two years, real demand will be lower in the last six months than in the first six months. In the second half of the year, real demand for stainless long products will be five percent lower, while real demand for stainless cold rolled flat products will decline by two percent, both compared to the first half. Distributors report a subdued but stable order volume for both flat and long products in the last quarter of 2013, while sales to end-users are increasing slightly. As there is not a lot of confidence about future price hikes, stockists are still cautious.
Meanwhile, Damstahl said that the various end-use segments in Europe indicate a strengthening market in 2014. The building and construction sector is expected to rebound next year, while the automotive sector is expected to grow by five percent year on year.