Brussels (Platts)--6Feb2012/551 am EST/1051 GMT
The global stainless steel industry will continue to grow as it has in previous years, Pascal Payet-Gaspard, secretary general of the International Stainless Steel Forum said Monday. "In 2012 we are looking at much better things than people are thinking. 2012 will be a growth year in the trend of the last years," Payet-Gaspard said at the CRU World Stainless Steel Conference in Brussels. In 2011, global stainless steel production grew by an estimated 4.5% to 32.5 million mt. The market grew by an average of 6%/year between 2000 and 2010. "This industry is a growth industry," Payet-Gaspard said. He noted that China accounted for a large proportion of this growth and that most of the growth has come from increased production of 200 and 400 series material. Payet-Gaspard expects production of 200 series to fall off and 400 series to become the major growth area. Article continues below... Request a free trial of Metals Week Offering more than 350 prices, complete news coverage, and in-depth analysis of market developments around the world, Metals Week delivers the critical insights you need to make profitable decisions. This detailed package of reports will help you monitor global events and quickly spot opportunities or potential pitfalls for major metals, precious metals, light metals, steel and ferroalloys and minor metals.
The global stainless steel industry will continue to grow as it has in previous years, Pascal Payet-Gaspard, secretary general of the International Stainless Steel Forum said Monday. "In 2012 we are looking at much better things than people are thinking. 2012 will be a growth year in the trend of the last years," Payet-Gaspard said at the CRU World Stainless Steel Conference in Brussels. In 2011, global stainless steel production grew by an estimated 4.5% to 32.5 million mt. The market grew by an average of 6%/year between 2000 and 2010. "This industry is a growth industry," Payet-Gaspard said. He noted that China accounted for a large proportion of this growth and that most of the growth has come from increased production of 200 and 400 series material. Payet-Gaspard expects production of 200 series to fall off and 400 series to become the major growth area.
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Offering more than 350 prices, complete news coverage, and in-depth analysis of market developments around the world, Metals Week delivers the critical insights you need to make profitable decisions. This detailed package of reports will help you monitor global events and quickly spot opportunities or potential pitfalls for major metals, precious metals, light metals, steel and ferroalloys and minor metals.
He also said raw material price volatility continues to trouble the market with costs squeezing producer margins. Overcapacity has also been a hindrance to the industry. Producers have dealt with these issues by cutting costs and improving productivity, and where necessary closing mills, he said. In Asia, the use of nickel pig iron has seen producers become more cost-effective when nickel prices increase above the $20,000-21,000/mt level. In Europe, producers have looked to produce more higher value-added products and specialist stainless steel grades. Payet-Gaspard said India would be the next major growth area for stainless steel production. However, the major feature for future growth of the stainless steel industry in general was its sustainability. "The most important thing is sustainability. Stainless steel is growing because it is a sustainable material," Payet-Gaspard said. Over 80% of stainless steel production is from recycled material. "In sustainability, stainless steels are unmatched compared to other materials," he said.--Greg Smart, greg_smart@platts.com
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