Worldwide
crude stainless steel production, in 2018, reached an all-time high total of
more than 50.7 million tonnes. This represents an increase of 5.5 percent,
compared with the year earlier figure. MEPS predicts that global output will
grow by approximately 4 percent, in 2019, to achieve a new record high mark of
around 52.7 million tonnes.
In the
United States, the effects of tariffs and quotas, arising from the Section 232
action, began to subside, last year. More competitive import offers became available,
while growth in domestic demand slowed. Consequently, a moderate increase in
output, of around 2 percent, was registered, in 2018. MEPS forecasts a similar
scale of expansion, this year.
Last
year, the authorities in the European Union introduced safeguarding measures,
to prevent third country material from being diverted from US customers to the
EU market. Nevertheless, many import offers remained attractive. Furthermore,
consumption, in the region, showed little sign of growth. Total crude stainless
steel production was, therefore, broadly unchanged, year-on-year. MEPS foresees
a similar outturn, in 2019.
Japanese
producers returned a healthy increase in output, of more than 3.5 percent, in
2018. However, due to subdued demand, competitive pricing, and excess
production capacity, in the Far East region, no further expansion is predicted,
this year.
Minimal
production growth was reported in South Korea, last year. A reasonable upturn,
of more than 2 percent, year-on-year, is forecast for 2019.
(Read last month’s MEPS Stainless Steel Review Keynote)
In the
face of fierce competition, in the region, output from Taiwanese stainless
steelmakers slumped, in 2018, by almost 15 percent, compared with the previous
year. Total annual production is expected to be unchanged, this year.
Indian
crude stainless steel output continued to grow, strongly. An increase of more
than 7 percent, year-on-year, was recorded, in 2018. Further, healthy
expansion, of over 5 percent, is forecast for the current year.
After several years of phenomenal advancement, Chinese production is, now, in a more mature phase of development. Steady growth, at around 3.5 percent, was reported, last year, and a similar increase in outturn is predicted, for 2019.
(Ukrainian metal)