Global stainless steel consumption grew 4.5 percent last year

According to the Bureau of International Recycling (BIR) global stainless steels and special alloys market research survey, global stainless steel consumption in 2013 increased by 4.5 percent compared to 2012. At the same time, a similar increase in demand for stainless steel is expected this year. At the same time, the Bureau recognized 2013 as “a very difficult period for stainless steel producers”.

China accounts for over 50 percent of the world's stainless steel production. As noted in the BIR, imports of stainless steel scrap in China dropped significantly last year due to the total switch of local producers to nickel-containing cast iron. At the same time, domestic prices for stainless scrap rose in Taiwan and South Korea. Taiwan's stainless steel production increased by 25 percent in 2013. India has reduced production of stainless steel somewhat.

Russian suppliers preferred to hand over stainless scrap to domestic consumers. These trends will continue as world prices remain lower than domestic prices. In addition, the introduction of government restrictions on the export of scrap metal from Kazakhstan contributed to an increase in prices for it in the Russian Federation.

In the Middle East, BIR anticipates a surge in demand for stainless steel. In the US, improvement is possible in the second half of 2014. In Germany, there is a significant excess of supply of stainless steel scrap over demand after the closure of the plant in Krefeld. The UK market will remain unchanged as it did in 2013.