Seasonal Summer Fall In Stainless Steel Consumption

Posted in Industry News on 4th August 2011

William Rowland are a leading supplier of Stainless Steel.

The demand for stainless steel has weakened in the second half of this year in both American and European markets. The seasonal summer fall in consumption of steel (where many mills take annual breaks from production) appears to have arrived early in many parts of the world. Continued fears over the global economy may lead to subdued markets.

Depending on the extent of this dip in demand, prices for ferro-molybdenum and molybdenum oxide may keep their prices suppressed. Recent months saw prices drop, however they turned upward for some global markets.

The global production of stainless steel was 8.4 million tonnes in the first quarter, which is an 8% increase on last year's production. The global consumption in the first quarter is estimated to be only 6.6 million tonnes, rising to approximately 7.5 million tonnes in the second. It is also predicted that during the second quarter the consumption will decline to 6.1 million tonnes in the third quarter, and 5.5 million tonnes in the fourth.

European consumption of stainless steel was 1.6 million tonnes in the first quarter and 1.9 million tonnes in the second, but predicted to fall to 1.5 million tonnes in the third and 1.3 million in the fourth. However in comparison, the American consumption was 680,000 in the first quarter and 659,000 in the second, with an estimated decline expected in the third with 568,000 tonnes. The dip is said to rise again in the fourth quarter to 642,000 tonnes according to analysts.

The most improved territory this year is Asia where their consumption increased 4 to 5 fold in 4 years, and the global levels match those of 2008. However, America dropped to half of their 2008 levels and Europe to a third of their recorded consumption. There will be no significant improvement in molybdenum oxide or ferro-molybdenum prices unless other end-use sectors improve in the upcoming quarters. Stainless steel accounts for approximately 25 - 30% of molybdenum consumption. This is the metals largest end use by far aside from other types of alloy steels, which account for 32 -35% of molybdenum consumption.

It is suggested that molybdenum may benefit from being a substitute for nickel in certain grades of stainless steel, following on from a peak in nickel prices. Most commonly, 8 - 10% of stainless steel is made up of nickel however this amount can be reduced or eliminated by using more molybdenum and chromium.

William Rowland Ltd are stainless steel suppliers, and if you would like to find out how we can meet your requirements, please contact us using the Quick Enquiry Form on the right-hand side of this website.

Tags: Metal Powders News, Stainless Steel News