EU stainless market poised to show modest growth in 2015

In its latest report, research agency Moody predicts a moderate recovery for the EU stainless steel market in 2015. Stainless steel production in the region will slightly increase over the next year. The growth of cheap imports of stainless steel products from China and Taiwan is likely to be limited.

The improvement in the economic situation in various countries of the EU region will activate consumers. Demand for finished stainless steel products is projected to increase across a wide range of industries, including automotive, consumer goods, medical technology and construction. The increased demand could drive higher plant capacity utilization, which is expected to grow from current levels of 75 percent to 80 percent in 2015.

According to Moody's analysis, efforts to restructure large EU factories over the past year will pay off in 2015. ThyssenKrupp has already announced strong rationalization plans for the year ahead. Outokumpu announced the planned closure of the Bochum plant in August 2015. This year the company has already reduced its production capacity by 6 million tons. Problems with the supply of raw materials and increased demand can lead to higher prices for products. Major firms expect significant improvement in base prices for stainless steel products over the next 12 months.

However, increased imports from Asia could dampen the prospects for any price increases. Meanwhile, imposing higher anti-dumping duties on imports from Asian countries, especially China and Taiwan, could benefit European stainless steel producers.