Crude Stainless Steel Output to Hit All-Time Highs: MEPS

SEATTLE (Scrap Monster): MEPS International Ltd.- the market-leading analyst group foresees record global crude stainless steel output during 2019 and 2020.

According to MEPS, the global crude stainless steel output is projected to reach an all-time high of 52.1 million tonnes during the current year. This implies a growth of 3% from the record production level achieved in 2018. Also, MEPS foresees the global production to register further growth in 2020. The production is likely to hit new record of 54.2 million tonnes next year.

The global production growth is mainly attributed to Chinese output, which is forecast to surge higher by more than 6% over the previous year to touch 28.3 million tonnes in 2019, thereby accounting for more than 54% of the global production. Also, Chinese output is forecast to grow by additional 5% in 2020, MEPS noted. Meantime, India’s stainless steel production is expected to grow by 3% in 2019 to 3.875 million tonnes this year. MEPS predicts 3% expansion in output next year.

On the contrary, the U.S. crude stainless steel output is likely to fall by nearly 3% in 2019 to 2.725 million tonnes. The 2019 output by South Korea may decline by 4%, whereas Japanese and Taiwanese outputs are expected to decline by around 10% each. However, moderate recoveries are expected in all these countries next year.