China boosts world stainless output by nearly 6%
orld output of crude stainless steel was 12.96m tonnes in the first half of this year, according to figures compiled and partly estimated by Macquarie Research and seen by Steel Business Briefing. This represents an increase of 5.8% over the 12.26m tonnes produced in the first half of last year.
Analysts at Macquarie note that the increase was almost solely due to China. Its first-half production of 1.51m tonnes was up by 51% year-on-year. In contrast, output fell 2.2% to 4.49m tonnes in Western Europe and edged up by 2.8% to 1.23m tonnes in North America. Japanese first-half production was 2.17m tonnes, up 3.2%. This left world production, excluding China, at 11.45m tonnes, up only 1.8% year-on-year.
China also had net stainless imports of 1.74m tonnes, up almost 30%. Macquarie says this appears to have been in excess of consumption needs, and import demand has fallen sharply in recent months. This has led to stainless production cuts in the rest of Asia. There have also been output cuts in Europe as a result of a stock overhang, as previously reported in SBB.
As a result of these cuts, stainless production in the second half of this year is likely to be lower than the first half. This would leave output for the whole of 2005 at 25.45m tonnes, 3.8% more than 2004’s 24.51m tonnes, Macquarie forecasts.
Analysts at Macquarie note that the increase was almost solely due to China. Its first-half production of 1.51m tonnes was up by 51% year-on-year. In contrast, output fell 2.2% to 4.49m tonnes in Western Europe and edged up by 2.8% to 1.23m tonnes in North America. Japanese first-half production was 2.17m tonnes, up 3.2%. This left world production, excluding China, at 11.45m tonnes, up only 1.8% year-on-year.
China also had net stainless imports of 1.74m tonnes, up almost 30%. Macquarie says this appears to have been in excess of consumption needs, and import demand has fallen sharply in recent months. This has led to stainless production cuts in the rest of Asia. There have also been output cuts in Europe as a result of a stock overhang, as previously reported in SBB.
As a result of these cuts, stainless production in the second half of this year is likely to be lower than the first half. This would leave output for the whole of 2005 at 25.45m tonnes, 3.8% more than 2004’s 24.51m tonnes, Macquarie forecasts.