SHANGHAI, Jun. 22 -- In 2010, Russia's stainless steel market is expected to return to the levels of 2005, with rolled stainless steel production forecast to amount to 85,000 mt and its consumption to 170,000 mt, Vladimir Latyshev, CEO of ThyssenKrupp Materials Russia, a subsidiary of Germany-based steel giant ThyssenKrupp AG, said at the annual congress of the Russian Union of Metal and Steel Suppliers in Yekaterinburg city. He added that, considering stainless steel consumption per capita, this year Russia (1 kg) will lag behind not only Europe (8 kg), but also Asia (5.5 kg).
"Nickel price dynamics cause volatility of stainless steel prices. In the last two years, the world has seen an overproduction of nickel, so price slides are possible also this year," Mr. Latyshev said, forecasting a 10-15 percent year-on-year increase in 2010 in world stainless steel production to 7.4 million mt. "However, a redistribution of forces is seen, with more and more production going to Asian countries," he added.
In 2010, ThyssenKrupp Materials Russia intends to sell 214,500 mt of steel products, including 4,500 mt of stainless steel products. In 2009, the company sold 201,000 mt of steel products, with the share of stainless steel products amounting to two percent.