In March this year, European stainless crude steel production increased by one percent to 710,000 metric tons, with Sweden's production increasing by six percent, Slovenia's production up two percent and Germany's production down 20 percent, all compared to March 2013, according to the Stainless Steel Report June 2014 issued by Germany-based service center Damstahl.
Meanwhile, at the beginning of the second quarter of this year, the erosion of the base prices in Europe came to an end, which puts European mills in a better position for the coming months. However, European manufacturers are still struggling against mills such as Posco Assan in Turkey as well as against Chinese, Taiwanese and Indian suppliers. It is thought that base prices have bottomed out and that mills will succeed with further price increases. Demand will improve in the second quarter of this year, but on the other hand the profit situation remains a critical issue for European mills, even if two out of three major stainless steel flat producers in Europe were in the profit zone in the first quarter.
According to the report, after a satisfactory first quarter for stainless crude steel demand, the European market is driven by strong stainless steel end-user demand also in the second quarter of this year, supported by ongoing restocking activity for commodities.
Damsthal stated that in the current year real demand for cold rolled steel in the European market excluding Turkey will grow by three to four percent year on year.