Global crude stainless steel output up 3.4% in Q1-3

SHANGHAI, Dec 20 (SMM) – Global production of crude stainless steel amounted to 39.81 million mt in the first three quarters, 3.4% higher than the same period a year earlier, showed data from International Stainless Steel Forum (ISSF). 

During the same period, production in mainland China rose 11.7% to 22.49 million mt, contributing to the global growth as output in other regions of the world, such as Europe, the US, and the Asian region excluding mainland China, all declined from a year ago.

ISSF data also indicated that the world’s production of crude stainless steel in the third quarter stood at 13.69 million mt, up 2.2% from the second quarter. Output in mainland China accounted for 8.14 million mt, 6.1% higher on the quarter. 

SMM learned that the increase in China’s production and capacity of stainless steel has slowed since 2017, as weakness in the broader economy weighed on consumption from the property and car markets, and the rise of the stainless steel industry in Indonesia squeezed the market share of Chinese producers. 

SMM estimates a capacity addition of 16.5 million mt/year in China’s stainless steel industry in the coming three years, but the actual progress in commissioning will rest with cash flows at steelmakers and the pace of capacity replacement.