Global stainless steel output drops in 2009, but results better than expected

In 2009, world stainless crude steel output stood at 24.6 million metric tons, decreasing 5.2 percent year on year, according to the preliminary report released by the International Stainless Steel Forum (ISSF) on March 23.

According to the report, it is stated that the decrease was not even around the world with some regions reporting that production declined by up to 30 percent, while in other areas stainless fabrication increased by up to 27 percent. This result probably reflects the uneven nature of the global economic downturn which has seen some countries and regions affected more than others. Similarly, some areas of the world have recovered quicker from the downturn than others.

Excluding China, Asian stainless production declined by 11.6 percent to 7.1 million metric tons, while the level of stainless fabrication remained flat in South Korea during 2009, it increased by 13 percent in Taiwan, all compared to 2008. Stainless crude steel production declined in Japan by 27 percent during the year while in India the drop was 11 percent.

China has been the driving force in the stainless industry and that trend continued in 2009. Production grew by 26.8 percent compared to 2008, reaching 8.8 million metric tons. Including China, Asia now makes almost 65 percent of the world's stainless steel.

Production in the Western Europe-Africa region declined by 22 percent in 2009 with the total volume reaching just 6.5 million metric tons. Except for South Africa, all countries in the region reported significant declines in production, some as high as 50 percent.

Stainless crude steel production (in ‘000 metric tons):