Despite Recovery, Stainless Production Still Down Through First Half of ‘09
09/23/2009 - World production of crude stainless steel reached 10.8 million tonnes through the first six months of 2009, a 26.7% decrease compared to YTD08, according to preliminary figures released by ISSF.
World production of crude stainless steel reached 10.8 million tonnes through the first six months of 2009, a 26.7% decrease compared to the same period of 2008, according to preliminary figures released by the International Stainless Steel Forum (ISSF).
YTD ‘09 vs. YTD ‘08—All major regions showed lower production volumes in the first half year 2009, with only China reporting an increased production volume during the period.
Excluding China, the Asia region reported stainless steel production of 3 million tonnes through the first six months, a 34% decline compared to YTD ‘08. All stainless producing countries (except China) reported reductions in production volume, with declines ranging from 10 to 50%. In sharp contrast to the other Asian countries, China increased its stainless steel production by 5.3%; at 4.1 million tonnes, China now accounts for almost 40% of the world’s stainless steel production.
Western Europe/Africa reported a total stainless steel output of 2.9 million tonnes for the first six months, a 40.5% decrease compared to 4.9 million tonnes for the first half of 2008.
In The Americas region, stainless crude steel production declined by 40.6% to 0.8 million tonnes in the first half of 2009. Production in the Eastern Europe region was just 100,000 tonnes, an almost negligible volume and a 48.6% decrease vs. YTD ‘08.
Second Quarter vs. Previous Quarter—According to ISSF, a comparison of the first and second quarters of 2009 indicates that a significant recovery in stainless steel production may have begun. All regions, except Eastern Europe and the Americas, showed strongly increased production volumes in the second quarter. In Asia and China the increase was almost 30% above first quarter production, while Western Europe/Africa reported a 20% increase in the same period.
Market Share Changes in Second Quarter— A comparison of the market share of each of the main stainless steel grades appears to show there has been a recovery in the market-share of austenitic steels (300-series) compared to 2008 levels (62.1% in YTD09 vs. 60.5% in YTD08). Market-share has fallen for ferritic grades, however (24.8% in YTD09 vs. 28.1% in YTD08), mainly due to the global decline in automotive production, typically a strong market for 400-series grades. The market share of chromium-manganese steels (200 series) has increased a little (13.0% in YTD09 vs. 11.4% in YTD08), largely due to an improved domestic market in China.
The International Stainless Steel Forum (ISSF) is a non-profit research organization, which serves as the world forum on various aspects of the international stainless steel industry. Founded in 1996, ISSF has its own Secretary General, Board of Directors, Committees and budgets. Based in Brussels, Belgium, ISSF is legally a part of the World Steel Association.
