Global stainless steel production fell again with production in 2008 totalling 25.9 million metric tons, according to the International Stainless Steel Forum. (ISSF is a non-profit research organisation, which serves as the world forum on various aspects of the international stainless steel industry. ISSF was founded in 1996.)
These preliminary figures indicate an output decline of 6.9% less than the 2007 level, which would mean a second consecutive year of global production decline.
Production totals for 2007 were 2% below the previous year’s output. ISSF proposes that the global economic downturn in the fall of 2008 was likely only one reason for the decline.
It said “normal seasonal factors” and “external raw materials price volatility” were also influential.
In addition, ISSF notes that the 2008 production patterns were similar to those in 2007, with positive trends prevailing in the first half, followed by an “extremely depressed second half,” of each year.
“In a matter of weeks we moved from a bright future to a gloomy environment,” the Forum stated.
Other factors the group cites for the production decline are “overstocks, reduction of excess inventories bought at inflated prices, complete stop of purchases from distributors, and some end users.”
Regional stainless production showed a decline in Asia broadly and in China, specifically, in 2008.
In Asia, minus China, stainless steel output declined by 10.3% to 8.1 million metric tons in 2008. While ISSF says China has been the driving force behind increases in global stainless steel production, in 2008 the country’s output dropped 3.6% to 6.9 million metric tons.
Asia, not including China, now represents about 31% of the world’s stainless steel output, and China alone produces about 27% of the total.
Western Europe and Africa represent a single region for ISSF’s record-keeping, the second-largest stainless producing region. Its stainless production decreased by 4.8% to 8.3 million metric tons in 2008.
In North and South America, stainless production decreased by 11.1% to 2.3 million metric tons.
Production in the Central and Eastern European region fell by 8.6%, which is above the than the world average. It produced only 333,000 tons in 2008.
http://www.worldstainless.org