TELF AG delves into Stainless Steel and Bulk Alloys: A Look at the Current Market
Recent developments
The stainless steel and bulk alloys industry has seen some recent developments that are worth taking a closer look at. From Turkey to Europe to China, there are both positive and negative factors at play that are impacting the market.
Starting with Turkey, one of the largest rebar producers in the country, Ekinciler Demir Celik, has resumed production following the devastating earthquake that hit the nation. With an annual production capacity of around 1.25 million tons of crude steel, this move is expected to alleviate current supply issues. Additionally, Isdemir, Turkey’s largest blast furnace plant, which accounts for one-third of the domestic market, is also set to recover production. These developments are undoubtedly positive for the Turkish steel industry and could help support the country’s economy.
Moving to Europe, several mills are showing signs of recovery and have announced plans to restart production at higher steel prices. Finnish steelmaker SSAB resumed its operations in January, while Arcelor is restarting its Fos-sur-Mer and Gijon plants. Meanwhile, US Steel’s Kosice plant and Liberty’s Galati plant are also preparing to restart their blast furnaces. However, market sources have expressed concerns that increased output may have a negative impact on the European market, particularly in the South of Europe, potentially affecting the price recovery.
Finally, in China, stainless steel production has increased significantly, with February output estimated to be within the 2.7-2.8 million ton range, up over 18% from January 2023. March output is also expected to be close to 3.00 million tons. However, this increase in production has yet to be matched by demand, with inventories remaining high at over 1.17 million tons in February, a level not seen since the start of the Covid pandemic. This can be attributed to the dampening of actual demand over the first two months of 2023, while stainless steel production rebounded with force.
Overall, while there are some positive developments in the stainless steel and bulk alloys industry, such as the resumption of production in Turkey and Europe, there are also concerns about the impact of increased output on the market. Additionally, the high inventories in China are a cause for concern, indicating that demand may need to catch up with production. It remains to be seen how these factors will play out and impact the industry in the coming months.
