Recovery in stainless steel production, but no bonanza in sight: MEPS

摘要

Major steelmakers in the US have announced a series of transaction price hikes over recent weeks for strip mill products. These are steadily being implemented. There is little import competition to prevent further increases being applied. Certainly, distributors are keen for the proposed rises to take hold as they will produce benefits in terms of stock valuation. Nevertheless, market players are concerned that the price recovery might not be sustainable if the mills prematurely restart idled facilities. Service centre business is still down by 40/50 percent with only a small recent increase in activity, most probably due to the price advances. The economy remains depressed, leading to a persistently low level of steel consumption. A recovery in the stainless steel sector is underway. World steel production in the second half of this year will be significantly higher than in the first six months. The Asian market has started to pick up. Destocking is coming to an end in most western nations and inventory rebuilding has commenced. We should point out that this revival is from a very low base.