ISSF: Global stainless steel output in Q1 2016 surpassed 10 million mt

BRUSSELS (Scrap Monster): According to recent statistics published by the International Stainless Steel Forum (ISSF), the global stainless steel production increased marginally by 0.40% during the first three months of 2016, in comparison with the corresponding quarterly period in 2015.

The total stainless steel output during the first three months of 2016 amounted to 10.260 million metric tons, marginally higher by 0.4% when compared with the output of 10.220 million mt in Q1 2015. When compared with the production during the quarter before, the stainless steel output during Q1 2016 has grown by almost 1.1%. The global stainless steel output during Q4 2015 had totaled 10.152 million mt.

The production in the Western Europe/African region was down marginally by 2.67% to total 1.955 million mt during the first quarter of 2016, in comparison with the production of 2.007 million mt during Q1 2015. The Central/ Eastern European region’s production increased marginally when matched with the previous year. The output was up by 0.7% over the previous year. The region had produced 64,000 metric tons of stainless steel during the initial quarter of 2015.

The stainless steel output by the Americas has declined significantly by 16.4% during the initial three-month period of the year to 642,000 mt. This is when matched with the production of 768,000 mt during the corresponding quarter last year. The Chinese output increased slightly by 3.8% year-on-year during Q1 this year to 5.203 million mt. The output by the Asian region too reported marginal growth of 1.2% over the year. The stainless steel output totaled 2.395 million mt in Q1 2016 as against the output of 2.366 million mt during the initial quarter of 2015.

The stainless steel production during the first quarter of the current year by Western Europe/Africa rose significantly by 9.8% when compared with the prior quarter. The region’s stainless steel output had totaled 1.780 million tonnes during Q4 2015. The quarterly output by Central/Eastern Europe region climbed higher by 5.5% when matched with the production of 61,000 tons during the last quarter of 2015. The Americas and Asian region excluding China witnessed quarter-on-quarter growth of 6.7% and 0.4% respectively. The Chinese output dropped by 2.3% over the previous quarter.

Meantime, a new report released by Grand View Research, Inc. forecasts the global stainless steel market to reach $127.19 billion by 2024. The expanding middle-class population coupled with rapid urbanization and improved socio-economic standards is expected to be the key factor driving market demand. Incidentally, demand for stainless steel long products have increased significantly during recent years, primarily on account of increased demand from construction and infrastructure sectors. The growth in construction industry in the US will positively impact the stainless steel market during the period from 2016 to 2024.

According to the report, the use of stainless steel by automotive industry is poised to witness rapid growth due to its light weight and corrosion resistance. Automotive application of stainless steel will see the fastest CAGR growth of over 4% during 2016 to 2024. Also, stainless steel will see increased applications in heavy industries and consumer goods.