MEPS International has reported that the recent global stainless steel production has reflected the shift in size and influence between the worlds established and developing countries. For example, Chinas crude stainless steel output has grown almost five times since 2006. In fact, in 2016 the countrys output represents almost 55 percent of the worldwide total. During that same year, India produced more than Japan and became the worlds second-largest stainless steel producer.
Indias stainless steel output continues to grow at a rate of eight to nine percent YOY. It is expected to reach 4 million tons in 2018, which will be a result of the increasing domestic demand from the automotive sector, as well as the housebuilding and infrastructure industries. China is still ahead as its stainless steelmaking capabilities have hugely increased over the last two decades. Output overtook domestic consumption several years ago, forcing Chinese producers to seek overseas customers. In the face of global competition and a widespread economic slowdown, Chinese sellers cut their prices to help secure sales. As a result this has led to antidumping charges and punitive tariffs, or duties being applied by many countries, against Chinese imports.
Tsingshan Group and the US producer, ATI, will, subject to regulatory clearance, allow the former party to ship slabs to the USA, for rolling and further processing. The resulting cold rolled sheets will then be sold, by ATI, as, effectively, a domestic product.
Image courtesy of Steel Market Intelligence