Stainless steel production for first half of 2010: More than 40% increase

Preliminary figures released by the International Stainless Steel Forum (ISSF) show that stainless steel and crude steel production has tremendously increased in the first half of 2010 by 44.3% compared to the same period of 2009. Total production for the first six months of 2010 was 15.6 million tonnes . All major regions showed significant higher production volumes in the first half year 2010. Remarkably, China reported a lower than average production increase.

This never-seen-before strong magnitude of stainless steel production growth is reflecting several facts:

1. A clear statistical basics effect after the dramatically decreased production in the first half of 2009 due to the world-wide economic crisis.

2. A much stronger and quicker than anticipated recovery of the global economy.

3. A strong re-stocking business, partially combined with speculative buying.

4. A re-filling of the mill-internal supply-chain.

In Asia with China excluded, stainless steel production increased by 46% to 4.3 million tonnes. All stainless steel producing countries significantly increased production in the first half of 2010. Growth rates were between 20% and 80%. China increased the stainless steel production in the period of review by 35% to 5.5 million tonnes.

Western Europe and Africa reported a 49% increase in stainless steel production during the first six months of 2010. Total production was 4.3 million tonnes in this period. In the Americas region, stainless crude steel production grew by 68% to 1.4 million tonnes in the first half of the year. Production in the Eastern Europe region showed an increase of 63%, with less than 0.2 million tonnes continuously on an almost negligible low volume level.

A quarter-by-quarter comparison shows a different development of stainless steel melting activities. All regions — except the Americas — showed further increased melting volumes in quarter 2 compared to the previous quarter. Asia and China increased their production quarter on quarter by 2% and 10% respectively. “EuroAfrica” reported a 7% increase in the same time. At the same time the Americas reduced production by 8% quarter over quarter. The globally achieved volume of 8 million tonnes is an all-time-high production level.

The split by main stainless steel grades has seen a recovered market share of ferritic steels. This clearly reflects the strong production recovery in the global automotive industry. The market share of austenitic chromium-nickel stainless steels has slightly decreased with the average of 2009 due to the stronger development of the ferritics. The market share of chrome-manganese steels has increased somewhat due to the better domestic market demand in China.