Stainless Steel Production to Reach Record High in Centenary Year

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Running against the general economic odds, global stainless steel production is forecast to grow by almost 6% year-over-year this year, reaching a total production of 34 million tons, which chimes nicely with the 100th anniversary of stainless steel's "discovery."

The 2011 total was also a record with 32.1 million tons and topped 2010 production by 3.3%, also a record year.

In the traditional stainless steel-producing regions, only the European Union and South Korea exceeded their previous year's output. The U.S, Japan and Taiwan all produced less than they had in the previous year.

According to the China Iron & Steel Association (CISA), production in China rose 11.9% to 12.6 million tons. However, it is believed that much stainless steel, particularly 200-series material, is made by companies who are not CISA members. This material is not included in generally quoted statistics. This underreporting may have amounted to as much as 2.5 million tons in 2011.

In the EU, stainless steel production was less than 1% higher year over year in 2011. A larger increase is forecast by MEPS in 2012. It is unlikely that capacity reductions arising from consolidation in the EU stainless sector will affect output in the immediate future.

In the U.S., production fell in 2011 but remained approximately 28% higher than the 2009 figure, which was the low point of the economic crisis. A modest rise is forecast for 2012 following signs of increased economic and industrial activity.

Japan's output dropped 5% in 2011, affected by the earthquake and tsunami in March. Reconstruction and safety schemes should support a modest recovery in 2012.

Taiwan's stainless production suffered most from the slowing growth in demand in the region. The 2011 output was significantly down on 2010, but an increase is forecast for 2012

Although output in all the established steel producing countries in the West and Far East continues to be significantly less that in the peak year of 2006, China's output, based on the official statistics, has grown 136% since that time, and a further rise of 10% is forecast for 2012.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.