A new phase of investment is essential for growth in the stainless steel industry, says CRU International, an economic and business consultancy for the metals industries.
Demand for stainless steel flat-rolled products is forecast to grow by nearly 1.5 million tonnes by the end of 1997, according to CRU’s new multi-client market study.
In order to satisfy this increase in demand, capacity to produce stainless steel, flat-rolled products is scheduled to rise by 32%.
Investments in capacity expansions are occurring at existing plants in Western Europe and North America, while a spate of new projects is springing up in South Africa and East Asia.
CRU believes this new capacity will rapidly become used as demand continues to grow, and that additional investment in capacity expansions will be needed during the 1997-2005 period, when demand is forecast to outstrip capacity.
Although investment needs will vary according to geographic location, new capacity is essential in most regions.
CRU believes opportunities for capacity expansion exist in three key areas: existing mills in major consuming regions; mills in emerging markets; and mills in South Africa and East Asia.
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