Q1 Stainless Production Hits Lowest Level Since 2000
06/10/2009 - World production of crude stainless steel reaches the lowest level of first quarter production since 2000—4.8 million tonnes in Q1 2009—according to the most recent report from ISSF.
World production of crude stainless steel reached the lowest level of first quarter production since 2000—4.8 million tonnes in the first quarter of 2009—according to the most recent report from the International Stainless Steel Forum (ISSF).
First Quarter vs. Previous Quarter—When compared to the already depressed fourth quarter of 2008, production increased this quarter only in China and the Americas, with all other regions showing production decreases. According to the ISSF, the relatively good performance of the Chinese stainless industry (+ 23.7% vs. the previous quarter) is due in part to additional stainless demand that appears to have been generated by the government’s economic stimulus package. ISSF noted that the Americas region increase (+10.2% vs. the previous quarter) was on a very small volume of just 411,000 tonnes.
Production in Asia (excluding China) showed the largest first-quarter decrease, at -14.3% vs. the previous quarter. First-quarter production in Europe/West Africa also fell by a significant amount, -12.3% vs. the previous quarter, while first-quarter production fell by only 0.5% vs. the previous quarter in Central and Eastern Europe.
First Quarter Production vs. Year-Ago Quarter—First-quarter global stainless steel production was down more than a third compared to the year-ago first quarter, with most stainless-steel-producing areas showing losses of more than 40%. China was the sole exception, with production falling by just 10.3%, possibly under the influence of the Chinese government’s stimulus package.
Compared to the year-ago first quarter, first-quarter 2009 production fell by 48.1% in Central and Eastern Europe; by 46.0% in Western Europe/Africa; by 42.1% in the Americas; and by 40.5% in Asia (excluding China).
Compared to the year-ago first quarter, first-quarter 2009 production fell by 48.1% in Central and Eastern Europe; by 46.0% in Western Europe/Africa; by 42.1% in the Americas; and by 40.5% in Asia (excluding China).
ISSF noted that all areas of the world are showing extraordinary stock reductions and low levels of demand in stainless steel-using industries due to the global economic slowdown.
Market Share Changes in First Quarter—Although the market share of chromium-nickel steels is largely unchanged in the first quarter of 2009 compared to the full year 2008, chromium stainless steels have seen a relatively large reduction in market share, which the ISSF said is due primarily to the global downturn in automotive production. Demand from the Chinese domestic market has helped to boost the market share of chromium-manganese grades.
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. ISSF is based in Brussels, Belgium.
