Global stainless crude steel output in the first half of 2004

Global stainless crude steel output in the first half of 2004

The International Stainless Steel Forum (ISSF) announced that global stainless crude steel production reached 12.3 million mts in the first half of the year with a rise of 6.3% compared to the same period of last year. Asia showed again the strongest growth with production rising by almost 11% to 5.7 million mts. The important countries in the Asia region that contributed to the growth were China, India and South Korea. The second biggest producing area, Western Europe and Africa, was affected by strikes in two major stainless steel mills in the first quarter. Stainless crude steel production in this area soared by only 1.6% to 4.9 million mts in the first six months. The Americas' production was recorded as 1.5 million mts, up by 5.9% from a year earlier. Production in Central and Eastern Europe decreased by 6.3%.

Stainless crude steel production (in ’000 metric tons)

                          Full year           First six months    +/-%
Region                    2002   2003   +/-%    2003      2004     YOY 
Western Europe/Africa      8'628  9'055   4.9    4'821     4'899    1.6
The Americas               2'734  2'831   3.5    1'410     1'493    5.9
Asia                       9'049 10'645  17.6    5'165     5'725   10.8
Central and Eastern Europe   252    277   9.9      144       135   -6.3
Total World               20'663 22'808  10.4   11'540    12'264    6.3

ISSF still expects global stainless crude steel production to reach 24.4 million mts in 2004 with a rise of 6.8%. However, it is reported that there may be a slight change in the totals for the regions.

Estimate of 2004 stainless crude steel production (in ’000 metric tons)

                            Full year           
Region                     2003   2004   +/-%
Western Europe/Africa      9'055  9'350   3.3    
The Americas               2'831  3'000   6.0    
Asia                      10'645 11'750  10.4    
Central and Eastern Europe   277    270  -2.5    
Total World               22'808 24'370   6.8 

The strong increase in demand for stainless steel in 2003, particularly in China, is attributed to the stock-builds. As a result, ISSF believes that the increase in stainless crude steel production will decrease slightly in 2005 compared to 2004.

Forecast of 2005 stainless crude steel production (in ’000 metric tons)

                            Full year           
Region                     2004   2005   +/-%
Western Europe/Africa      9'350  9'850   5.3    
The Americas               3'000  3'150   5.0    
Asia                      11'750 12'500   6.4    
Central and Eastern Europe   270    300  11.1    
Total World               24'370 25'800   5.9 

ISSF expects total production to reach 27 million mts in 2006 with a growth rate of 5%.