Overcapacity remains a problem for European stainless steel producers. Furthermore, currently nickel is priced under $23,000/mt on the London Metal Exchange or over 10 percent less compared with the beginning of 2011. In a context characterized by overcapacity and low demand, many European stainless steel consumers are postponing purchases hoping prices will be lower some months later.
The situation is likely to negatively impact the profits of stainless steel producers in Europe. For this reason, Spanish group Acerinox has announced it will reduce production and that its plants will work at 65 percent of capacity. In addition, Finland-based Outokumpu will cut jobs; Aperam, a stainless steel producing unit of ArcelorMittal, will reduce the capacity utilization of its largest steel plant in France by seven percent, a move that is likely to be followed by German group ThyssenKrupp.