2014 will be the best year for stainless steel manufacturers-Meps

According to the analysts of the British research group, Meps, the predominance of “cautious” optimism in the mood of “cautious” optimism became the basis that in 2014 the situation in the stainless steel sector will be better than in 2013. The market participants surveyed expressed the opinion that the production and prices of the stainless steel reached their bottom and the situation is proceeding to the interchange.

A number of large Western industrialized countries show encouraging results at the end of 2013: higher economic indicators, GDP growth and a reduction in unemployment. The Japanese New Economic Policy “Abenomica” leads the country out of the deep depression of the last 2 decades to a qualitatively new level of development.

Meps expects a rapid increase in demand for stainless steel from the traditional regions of its consumption of the EU, the USA, Japan, South Korea and Taiwan. This will be the first time after 2010. In addition, the capacity of the markets of developing countries will increase significantly.

British analysts are sure that in China and other developing countries, stainless steel production will grow at a faster pace than in the EU and the USA. And this will inflate the prices for nickel, which remains in the surplus at the beginning of this year. In addition, the medium -term prospects of the inevitable prohibition by Indonesia of the export of minerals and nickel, including, remain incomprehensible. However, the suppliers of ferrochroma will definitely not be able to raise prices for their goods until mid -2014, MEPS say.

Despite the fact that among the suppliers of stainless steel, loud statements about the rapid growth of sales are not yet heard, Meps believe that a moderate increase in activity will be observed all this year and that 2014 may become the best year in the industry over the past decades.