According to Bureau of International Recycling (BIR) data, growth of up to 4% is expected next year, led by China. These positive news for the stainless steel industry were considered promising figures.
There is a significant slowdown, particularly in Europe, reflecting the lull in global manufacturing activity in the third quarter. But Joost Van Kleef, chairman of the BIR Stainless Steel and Special Alloys Committee, is more optimistic in his thoughts.
At the end of the second quarter, large volumes of stocks of stainless steel flat and long products imported to Europe from tertiary countries last year were melted down over a long period of time. As imports and import product inflows returned to normal levels, factories in Europe took a breather for their own production.
Van Kleef reported that scrap demand strengthened in the third quarter, but supplies remained limited largely due to slow production activity. He also said, 'global stainless steel production figures will likely see another increase on an annual basis in 2023.' Analysts predict a growth of around 3 percent or even 4 percent for this year. It is thought that once again expansion will come from China.
Uncertainty in Asia
Asian research indicates that, on a regional basis, the stainless sector reached its bottom in terms of price and demand in August before rebounding in September. According to experts, questions remain whether this small recovery is temporary or extremely small-scale.
As we enter the fourth quarter, the demand picture for stainless steel scrap looks blurry, with the effects of the macroeconomic slowdown negatively affecting manufacturing activities. Low volumes of scrap and low scrap prices reveal possible stress in the market, according to experts. Production levels for stainless steel end products are not high.
According to the latest data from the Stainless Steel Development Association of India, domestic consumption had increased by nearly 10% in the last financial year to reach four million tonnes. Global average stainless steel production decreased by 5.2% from 58.2 million tonnes in the 2021 calendar year and fell to 55.2 million tonnes in 2022.
Other regions
The US Department of Commerce reported that the US exported more than 267 thousand tons of recycled stainless steel in the first half of 2023. This represented a 78% increase compared to the same period in 2022. Increasing demand from Mexico, India and Taiwan were considered as the main drivers of this increase.
Increasing demand for stainless steel in various industrial sectors in the Middle East has been seen as an important consequence of growth in the Gulf Cooperation Council region. The increase in construction projects and infrastructure development increased the need for metal.
The rise of the stainless steel market rose by almost 50% in the second quarter of 2023 despite UAE construction activity and high raw material costs. This increase is linked to the country's leading housing sector, commercial sectors and infrastructure movements; The increase in the levels by 35% and 44%, respectively, is considered among the positive developments.
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