World Stainless Steel Output to Surge by 11% in 2021

SEATTLE (Scrap Monster): The global crude stainless steel production is predicted to surge higher by 11% over the previous year to 56.5 million tonnes in 2021, according to most recent production upgrade provided by MEPS. The boosted production is mainly on the back of higher-than-expected Q1 output from Indonesia and robust growth in China.

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As per data, the stainless steel output by Indonesia totalled around 1.03 million tonnes during the initial quarter of the current year, which is the highest level in the history of the country. The stainless steel shipments to Europe witnessed increased momentum during the quarter. The country has been witnessing significant investment in new capacity, which will likely help the country to become the world’s second largest producer, overtaking India. Meantime, the Indian output is likely to touch 3.9 million tonnes during the year.

The Chinese output is predicted to touch 31.9 million tonnes. The government’s plans to curb exports are likely to limit production during the second half of 2021. The annual production from other Asian countries, including South Korea, Japan and Taiwan in 2021 is forecast to exceed 2020 levels.

Meantime, the prevailing low stock level, coupled with healthy consumption is expected to lead to significant deficit, thus keeping the prices high in the medium term.