Building DK Electronics DK Energy DK Food DK Food SE Metal Metal DK Metal NO Metal SE Retail DK Wood DK  
 

Damstahl: Weak market demand after strong Q1/12

- By Charlotte Stubben

European Stainless steel demand has somewhat slowed in March after an excellent start in 2012 – but no recession in sight, Damstahl reports.

Demand
European Stainless steel demand has somewhat slowed in March after an excellent start in 2012. There is however no reason to be too pessimistic for 2012.

Germany will remain a growth engine in Europe and the market situation in the other Damstahl countries is not so bad as well.

Read more: Damstahl: Mill results remained disappointing at the end of 2013

It is expected that these markets will perform again better than the rest of Europe, especially Spain, Italy and some other South European countries in 2012. 

Stocks
Fundamentals for Ni prices have changed due to a weakening Chinese demand for Ni and stainless. European buyers have reacted to the falling raw material prices and became more hesitant with new orders for stocks. It is expected that buyers will keep flat product stocks at relatively low levels in Q2/12 after temporary re-stocking in Q1/12.

Read more: Damstahl: Relevant issues in Germany

End user activity in important industrial uses have also somewhat slowed due to a stagnation for new orders. There is a certain risk that 2012 will become a repetition of the previous year: a strong Q1 and the remaining year with stability but little growth.

Forecast 2012
It is expected that the European stainless steel real demand will slightly grow to a market volume of 6.0 million t (~1% growth – 78% flat products). Demand in the Damstahl countries will grow somewhat faster (2-3%) than in the rest of Europe.

Mills
Mills expect an improved profitability in Q1/12, driven by raw material and base price increases. It was however not possible for the stainless steel flat product mills to fully succeed with envisaged Q1/12 base price increases all over Europe.

Mills have reduced stainless steel crude steel production by almost 30% in December 2011 (compared to November) in order to support market prices. In January 2012 and most likely in the other two months of Q1/12 as well, they have returned to around 700,000 t – 200,000 t more than in December (but a similar level as in January 2011).

Outside Europe
Continuous strong growth is expected for the US stainless market (+5-10% growth in 2012), while China will climb slower than in previous years (~5% in 2012).

Write Comment
Popular Articles

Sign up for our newsletter
Already 11,557 subscribers.
View the latest newsletter.
Follow us on:

Australian miners raise iron ore output targets

April 22, 2014 12:35 PM

Reuters reported that Australian miners are racing ahead with plans to expand iron ore production to capture more of the Chinese market for the steelmaking ingredient, amid strong competition from the world's biggest supplier Vale of Brazil.

Siemens receives FAC for extended Aluminum hot-strip mill at Novelis

April 22, 2014 11:56 AM

In February, Siemens received the final acceptance certificate for the extension of an aluminum hot strip mill of Novelis Korea Ltd. in Ulsan.

European car sales rise for seventh straight month

April 22, 2014 11:55 AM

The Associated Press reported that European car sales advanced a seventh consecutive month as new models to replace aging vehicles and an economic rebound in Britain boosted demand at Renault, Ford and Peugeot Citroen.


See allNews from the companies

Great success for FJ Industries A/S at the Hannover Fair 2014

April 14, 2014 2:50 PM
Fj Industries A/S

FJ Industries A/S participated last week with a great looking newly designed stand.

AP&T to demonstrate press hardening at BLECH China 2014!

April 10, 2014 4:48 PM
AP&T

There will be strong focus on press hardening when AP&T exhibits at BLECH China 2014 in Suzhou May 7-9.

SVIA & Animex at Elmia Automation 6-9 may – Booth D02: 40

April 14, 2014 12:00 AM
Svensk Industriautomation AB

Visit the Automation Fair No1 in Sweden!

April 9, 2014
April 8, 2014
April 4, 2014
April 3, 2014
April 2, 2014
April 1, 2014
March 28, 2014
March 27, 2014