The International Stainless Steel Federation reported that global stainless steel production declined 2.5 percent year on year to 12.46 million tonnes in the first quarter of 2019 from 12.78 million tonnes in the first quarter of 2018.
Manufacturing in China fell 1.5 percent, the US dropped 2 percent, Asia excluding South Korea dropped 5.7 percent, and Europe fell 5.7 percent YoY.
World prices for ferrochromium began to fall in the first quarter, indicating a decline in stainless steel production. According to the latest estimates from July 16, the price of high-carbon ferrochromium (60 percent) in India fell to almost a three-year low of Rs 62,000-63,000 /tonne. In China, high-carbon ferrochromium (50 percent) fell to its lowest level since June 2017 at RMB 6,350 /t on July 16.
European prices for high-carbon materials are at their lows in two and a half years at 80-86 cents /lb, and the European quarterly base price for low-carbon chrome fell to 1.04 euros /lb, the lowest since third quarter of 2016.
Demand for ferrochromium in Europe dropped this year due to the crisis in European steel production. Imports of finished steel to Europe rose 13 percent in 2018 and imports of stainless steel increased by 9.5 percent, putting pressure on European producers, according to Eurofer - European Steel Association.
Ferrochromium imports to Europe have increased in recent months, creating an oversupply. In the six months leading up to April 2019, Europe imported an average of 72,444 tonnes per month.
