Stainless Steel/Growth in melted output to slow

摘要

Since the start of the second quarter of 2003 sentiment has deteriorated in the global market for stainless steel flat and long products. In both Europe and Asia mill orders have tailed off sharply, and in the USA buying activity has failed to show any signs of seasonal improvement in Q2 this year. In response to the weaker demand scenario, CRU estimates that growth in western world melt rates will decelerate to 3.5 percent year-on-year in the second quarter of 2003. In addition, CRU expects growth rates will fall further in Q3 2003 in line with the northern hemisphere's summer holiday period. In Western Europe, poor levels of economic activity persist in the major stainless producing countries such as Germany and Italy. As a result, mills and distributors have become increasingly concerned as to what effect this will have on industry stocks and prices. While mill prices remained at a healthy level in April, restocking took place ahead of the announced, but unrealised base price increases. Consequently, these rising stocks have reduced mill lead times and there is an expectation that these will be further reduced once AvestaPolarit's RAP 5 at Tornio is commissioned later this month.