In 2017, worldwide crude stainless steel production in 2017 reached an all-time high total of nearly 48.1 million tons. This represents an increase of five percent, compared with the year earlier figure. MEPS predicts that global output will grow by a further five percent, in 2018, to achieve a new record high mark of around 50.5 million tons.
The introduction of tariffs or quotas, arising from the United States Section 232 action, is likely to alter the patterns of trade between the major stainless steel producing countries. Output in the United States grew by a healthy 11 percent, year-on-year, in 2017 and more moderate expansion is forecasted for this year.
Production in South Korea and Taiwan continued its recovery, having slumped, following the Global Financial Crisis of 2008/9. Output increased by six percent, last year, in South Korea, to total 2.4 million tons. In Taiwan, production grew by nearly nine percent, compared with the year earlier figure, to reach almost 1.4 million tons. Both countries are expected to record increases of around four percent, year-on-year, in 2018.
Growth is more moderate, in the traditional stainless steelmaking centres of Japan and the European Union. Production increased at a modest pace in both markets, in 2017. Expansion is predicted to continue at a similar rate, in both places, this year.
In China, the annual growth rate in stainless steel supply slowed, to 4.7 percent, in 2017, after years of rapidly increasing output. Nevertheless, at 25.8 million tons, the country produced over 53 percent of the worlds crude stainless steel, last year. A further increment, of around four percent, year-on-year, is forecast for 2018.
Stainless steel production continues to climb most steeply in the Others category. India is becoming a major part of the global supply chain, while a new facility in Indonesia, which was commissioned last year will also contribute significantly in the future.
Image courtesy of Reuters