According to the latest Bi Monthly Stainless Steel Report May 2013 issued by Germany-based service centre Damstahl, the European stainless crude steel production in the first 2 months of the current year amounted approximately to 1.4M tonnes falling around 1% compared to the corresponding period of 2012. In Germany, Sweden and Slovenia, the combined total production declined at a double-digit rate to around 300,000tns in 2013, compared to almost 400,000tns in the same period 2012, as Outokumpu continued to reduce production at its Krefeld meltshop.
According to the report, the situation in the European stainless steel market remains depressed. In the Q1 of the current year, demand from both end users and stockists remained significantly below last year’s levels. After a promising start driven by restocking in January, market activity softened again in February and March. However, early indicators, like the PMI and business confidence ratings indicate that the European stainless steel market will improve in the second half of the year.
Meanwhile, Damstahl said that demand from the building and construction sectors may fall again in 2013 by 1–2% in Europe. Germany, the United Kingdom, Norway and the Baltic Countries are bright spots where building permits exceed 2012 levels. However, low activity in southern Europe will keep the entire sector down in 2013.
