Global stainless steel demand climbed 4.5% in 2013: BIR

BRUSSELS (Scrap Monster): According to the latest Stainless Steel & Special Alloys World Mirror released by the Bureau of International Recycling (BIR), the global demand for stainless steel recorded a jump of over 4.5% in 2103. The demand is expected to post a similar growth in 2014. The organization called 2013 as ‘very challenging year’ for the stainless steel industry.

China accounted for more than 50% of the global stainless steel output. The scrap imports by Chinese mills declined sharply as more mills turned to domestically available nickel pig iron for production of stainless steel. The domestic scrap prices in Taiwan and South Korea jumped significantly higher. Taiwan’s stainless steel output surged 25% in Q4 over the previous quarter. The stainless steel output by India dropped during 2013.

Russian scrap suppliers preferred to sell into domestic markets. This preference is likely to continue as long as the international scrap prices continue to remain subdued in comparison with the domestic prices. Meanwhile Kazakhstan had introduced a temporary ban on ferrous scrap exports from the country.

In the Middle East region, UAE may witness a surge in demand for 430 SS, 304 SS and 316 SS grades from construction activities aligned to Dubai Expo 2020.The stainless steel scrap market in the US was severely affected by the bad weather conditions during the first half of the year. The conditions have improved slightly during the second half of the year. Overcapacity worries loomed the European stainless steel market in 2013. The closure of Krefeld works led to excess availability of scrap in Germany. On the other hand, ThyssenKrupp’s acquisition of AST’s facility may lead to growth in demand in Italy. The UK market is expected to remain flat during 2014, following the trend in 2013.