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Global Stainless Steel Production Hits Third Quarter All-Time High

Production for the first nine months of 2013 totaled 28 million metric tons, up 1.4 million metric tons in comparison to the same period of 2012. Production for the third quarter 2013 was at 9.3 million metric tons, a new all–time third quarter high. However significant differences in regional development prevail.
 
Asia excluding China recorded a stainless crude steel production of 6.5 million metric tons during quarters 1–3 of 2013 corresponding to a y–o–y decrease of -1.4%. The development of this region shows a mixed picture ranging from +5% (India) to -6% (Taiwan, China). In the PR of China stainless steel production increased by 1.9 million metric tons or +15.7% to 13.7 million metric tons during the first nine months in comparison to 2012. China now accounts for roughly half of global production.
 
The development of Western Europe/Africa was distinctly different with a y–o–y decrease of -5.6% (-0.336 million metric tons) and a total stainless steel production of 5.7 million metric tons for the first 9 months of 2013. Here too the development is heterogeneous fluctuating from +1 to +3% in Belgium and France to double digit negative values in Italy and Germany with the UK trailing behind at -15%.
 
Stainless steel production in the Americas for the first 3 quarters of 2013 is stable in comparison to last year at 1.8 million metric tons with an upward trend during this period. Central and Eastern Europe display a strong growth at +8% and 0.30 million metric tons, up from 0.27 million metric tons.
 
Table 1: Stainless and heat-resisting crude steel production [‘000 metric tons]
Region 9 Months Full Year
2012 2013 +/- %
y-o-y
2011 2012 +/- %
y-o-y
Western Europe/Africa 6,031 5,695 -5.6 7,883 7,829 -0.7
Central/Eastern Europe 274 296 8.0 391 359 -8.2
The Americas 1,824 1,824 0.1 2,486 2,368 -4.7
Asia (w/o China) 6,579 6,487 -1.4 8,770 8,720 -0.6
China 11,812 13,664 15.7 14,091 16,087 14.2
World total 26,520 27,967 5.5 33,621 35,363 5.2
Q3 of 2013 was stronger than Q2 thus not following the usual seasonal pattern. In the face of regional economic developments which in general show a strong Q2 and weaker Q3 this is most likely a singular quarter on quarter compensational effect. Western Europe/Africa and Central and Eastern Europe are the exceptions displaying the usual seasonal downturn.
 
Table 2: Stainless and heat-resisting crude steel production [000 metric tons]
Region Quarter 1 Quarter 2 Quarter 3
2012 2013 +/- %
y-o-y
2012 2013 +/- %
y-o-y
2012 2013 +/- %
y-o-y
Western Europe/Africa 2,211 2,157 -2.5 2,065 1,951 -5.5 1,756 1,587 -9.6
Central/Eastern Europe 87 94 7.8 98 114 16.5 90 89 -1.0
The Americas 607 598 -1.5 613 597 -2.7 603 630 4.4
Asia (w/o China) 2,226 2,170 -2.5 2,236 2,149 -3.9 2,118 2,168 2.4
China 3,790 4,404 16.2 4,006 4,414 10.2 4,015 4,845 20.7
World total 8,922 9,423 5.6 9,017 9,224 -4.8 8,582 9,320 209.0