Strong growth in global stainless steel production expected

Annual production of high quality stainless steel is estimated at 48 million tonnes in 2017, up 4.9 percent year on year. MEPS predicts further growth in global turnover by almost 5 percent in 2018 to a new high of 50.3 million tonnes.

Recently released official data for Chinese production was significantly higher than previously expected. The annual production of about 26 million tons represents 54 percent of the total stainless steel production. Further escalation is projected in 2018 with an increase of around one million tonnes in China.

The stainless steel production continued its strong recovery in Taiwan in 2017. The estimate of 1.375 million tonnes corresponds to an increase of almost 9 percent over the previous year. A more modest growth of about 4 percent is expected this year.

South Korea's production also boomed in the past year. The projected annual production of 2.4 million tonnes represents an increase of almost 6 percent over the previous year. In addition, a steady expansion of about 4 percent is projected for 2018.

Japan's stainless steel production is projected to reach 3.15 million tonnes in 2017, an increase of just under 2% over last year. A similar growth rate is projected in 2018.

The recovery in industrial activity helped the stainless steel output in the United States to increase output by about 8 percent in 2017, reaching a total of about 2.7 million tonnes. However, demand has declined in recent months and the outlook for growth in 2018 is more conservative at less than 2 percent.

Output in the European Union continues to recover at a slow but steady rate of around 2 percent per year. The estimated increase for 2017 was 7.4 million tonnes. A further increase of 150 thousand tons is projected for 2018.

Stainless steel production is growing faster in several countries in Asia. New manufacturing facilities, especially in India and Indonesia, contributed to projected growth of more than 12 percent in this group of countries in 2017. As steel production at these new facilities ramps up, substantial growth is expected, of around 20 percent, projected for this year.