MEPS predicts new record for stainless steel production
World production of rough stainless steel in 2018 reached a record level of over 50.7 million tonnes. This is 5.5 percent more than a year earlier. MEPS predicts that global production will grow by about 4 percent in 2019 to reach a new all-time high of 52.7 million tonnes.
In the United States, the impact of the tariffs and quotas imposed by President Trump early last year is diminishing. More competitive import offers became available, and domestic demand growth slowed down. As a consequence, 2018 saw a moderate increase in production of about 2 percent. MEPS predicts similar growth this year.
Last year, the European Union authorities introduced protective measures to prevent the redirection of third-country materials from US buyers to the EU market. Nevertheless, many import offers remained attractive. Moreover, consumption in the region showed little sign of growth. Thus, the total stainless steel production remained virtually unchanged from the same period last year. MEPS foresees a similar level of smelting in 2019.
Japanese manufacturers showed significant production growth in 2018, which amounted to more than 3.5 percent. However, due to weak demand, competitive prices and overcapacity in the region, further development did not take place. Slight expansion is projected this year.
The minimum increase in production was recorded in South Korea last year. Reasonable growth is projected for 2019 at more than 2 percent year on year.
Amid fierce competition in the region, production of Taiwanese stainless steel producers in 2018 fell by almost 15 percent from the previous year. It is expected that this year the total annual production of stainless steel here will not change.
Indian stainless steel production continued to skyrocket. In 2018, there was an increase of over 7 percent compared to the same period last year. In addition, more than 5 percent growth is projected this year.
After several years of phenomenal development, Chinese manufacturing is now in a more mature phase of development. Last year, it reported stable growth, around 3.5 percent, and MEPS is forecasting a similar increase in revenue in 2019.