Global stainless steel output for 2005

The International Stainless Steel Forum (ISSF) disclosed that global stainless crude steel production fell 1 percent year on year to 24.6 million metric tons in 2005. ISSF indicated that the production cuts in the second half of 2005 were the main reason of the decline in stainless crude steel production. Asia was the largest stainless steel producer and the only production area that recorded an increase in stainless steel output in the world during 2005. Production was driven by China and India. The total production in Asia rose 5 percent year on year to 12.5 million metric tons in 2005. The second largest stainless steel producing region was Western Europe/Africa. Total output in the region amounted to 8.8 million metric tons in 2005, down 6.4 from a year earlier. Only Spain and Italy recorded an increase in production compared to 2004. Production in the Americas region fell 8 percent year on year to 2.7 million metric tons in 2005. Demand for stainless steel in the Central and Eastern Europe region currently shows a strong increase. However, local production facilities can not meet this demand. Stainless steel production in the region fell 2.5 percent year on year to 310,000 metric tons in 2005.

Stainless crude steel production (in ’000 metric tons)

                              
Region                       2004        2005    % Change 
Western Europe/Africa        9,422       8,823      -6.4
Central and Eastern Europe     318         310      -2.5
The Americas                 2,933       2,699      -8.0
Asia                        11,897      12,498       5.0
Total World                 24,570      24,330      -1.0 

The stainless steel market has been impacted by an extreme lack of demand since the middle of 2005. The decline in output is attributed to the stock reductions in stockholders and fabricators. The decrease in production has continued into the early part of 2006. Market demand has started to recover in Europe and China. However, demand in Asia and the Americas is still slow.