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Global stainless steel production in 2008 dips by 7% YoY

Steel News - Published on Fri, 13 Mar 2009

According to preliminary figures released by International Stainless Steel Forum, the world stainless steel production reached 25.9 million tonnes in 2008 down by 6.9% YoY.

After a decrease of 2% YoY in 2007, this is the second year in a row that world stainless steel production has decreased.
Region20062007Change2008 PChange
Western Europe/Africa10,0008,669-13.38,255-4.8
Central/Eastern Europe376364-3.3333-8.6
The Americas2,9512,604-11.82,315-11.1
Asia w/o China9,7758,994-8.08,068-10.3
China 5,2997,20636.06,943-3.6
Total World28,40027,836-2.025,913-6.9

In ‘000 tonnes
Source: International Stainless Steel Forum

Overall stainless steel production in Asia, without China, declined by 10.3% to 8.1 million tonnes. Asia without China and China now account respectively around 31% and 27 % of the stainless steel produced in the world.

China has been the driving force behind the growth in stainless steel production however, in 2008 the country reduced production by 3.6% to 6.9 million tonnes.

The second biggest stainless producing area, Western Europe and Africa, reported a decrease in stainless steel production of 4.8% YoY to 8.3 million tonnes in 2008.

The Americas region decreased stainless crude steel melting by 11.1% to 2.3 million tonnes. Production in the Central and Eastern Europe region declined by 8.6%, more than the world average. However, with production of just 333,000 tons in 2008, the region remains a minor player in world stainless steel production.

ISSF said that “Beyond the normal seasonal factors of our industry, 2007 as well as 2008, turned out to have the same pattern: excellent first half, extremely depressed second half. The external raw materials price volatility and the overall worldwide economic situation added to the turmoil.”

It added that “The first half of 2008 turned out as being quite positive. By the third quarter, the financial and economic crisis combined with a massive drop in raw material prices - nickel being no exception - struck massively all cyclical industries. Our industry did not escape, on the contrary. Due to overstocks, reduction of excess inventories bought at inflated prices, complete stop of purchases from distributors and some end users, in a matter of weeks we moved from a bright future to a gloomy environment.”

Posted By : admin on Fri, 13 Mar 2009
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