MEPS: Global stainless steel output to touch all-time high in 2016

BRUSSELS (Scrap Monster): According to latest forecast published by MEPS-the leading consultancy firm, the global stainless steel output is expected to touch all-time high in 2016. The output is expected to grow by nearly 2% in 2016 to total around 42.3 million tonnes.

The global stainless steel production totaled just below 41.5 million tonnes during 2015, marginally lower by 0.5% when compared with the production in 2014. The stainless steel output had recorded an all-time high figure of 41.7 million tonnes during 2014.

The production dropped sharply below estimates during the second half of 2015. All traditional stainless steel making countries reported lower production figures during the year. The only exception was South Korea which recorded jump in output during the year.

The Chinese production declined when compared with the year before. Domestic consumption suffered heavy cuts in the country on account of slowdown in the country’s economy. The global demand too has turned sluggish. On top of that, many countries have imposed heavy import tariffs on stainless steel products from China. This has led to closure of many private Chinese stainless steel mills. The year 2016 will continue to see closing of more inefficient facilities. Despite all these negatives, China continued to account for more than half of the global stainless steel production in 2015. The country’s output is likely to increase by nearly 1.7% in 2016.

Japan’s stainless steel output totaled around 3 million tonnes in 2015 and is witness 5% year-on-year growth in 2016. Taiwan is also expected to post 2.7% growth in output in 2016 when matched with the previous year. The US output which recorded marginal decline in 2015, is likely to report moderate growth during this year.

South Korea reported significant jump in stainless steel output during 2015. The output surged higher by nearly 9% during the year. However, MEPS expects the country's output to remain flat during 2016.