According to Meps a recovery in the stainless steel sector is underway. World steel production in the second half of this year will be significantly higher than in the first six months. The Asian market has started to pick up. Destocking is coming to an end in most western nations and inventory rebuilding has commenced. Meps forecasts global crude stainless steel production at 21.6 million tonnes in 2009. Demand on the EU mills has picked up in recent months. Rising nickel costs have prompted end users and distributors to begin to place orders, as stainless steel selling values show signs of further increases. Several regional mills plan to lift output later in the year. Meps now expects 2009 production to reach 5.7 million tonnes – 27% below the 2008 figure. Japanese output collapsed in the first trimester. Meps does, however, detect a pick up in consumption from the automotive and IT sectors. Real demand in the USA remains at a low level. However, the local mills have started to claw back market share from importers. Meps now expects crude output in 2009 to be 900000tns below the peak figure in 2006. South Korean activity is likely to remain relatively slow. In contrast, the Taiwanese market has picked up as a result of government stimulus measures. Chinese demand and production rose in the first trimester as the producers lifted their operating rates to near maximum capacity. Stainless steel production in the remaining countries held up reasonably well. Mills in India maintained a strong activity level during the first three months of the year. This is expected to continue. Steelmakers in South Africa and Brazil made significant cuts in output in the first quarter but increases are predicted over the next six months.
