TELF AG takes A Look at the Current Stainless Steel and Bulk Alloys Market
European production
Steel production in Europe increased in January, and blast furnace restarts are on the horizon. However, despite the positive news, ferroalloy markets remain subdued due to existing contracts. The mixed views on the extent of demand recovery are reflected in the steel market’s prices, which remain under pressure.
In China, stainless steel’s domestic and export prices have declined, with prices falling further in the week ended March 8. The downward trend is due to an expectation of more supply in the coming week, with lower nickel prices on the London Metal Exchange adding to the downward pressure on China’s domestic STS prices. As a result, exporters from China have reduced their offer prices for stainless steel, but the lower prices still need to attract buyers. In addition, competition from suppliers in other regions contributes to sparse export trading in China.
In India, the domestic SiMn prices have edged lower due to thinning trade and slow end-user demand. While sentiment has improved in recent months following the removal of export taxes on finished steel products, domestic steel output growth and real ferroalloy consumption growth remain slow. In addition, several Indian producers have stopped or reduced production of SiMn due to high input costs and subdued demand. Therefore, the near-term outlook remains weak until any natural recovery can be seen in the steel sector.
The current market situation for stainless steel and bulk alloys highlights the ongoing challenges faced by the industry. The subdued ferroalloy markets and declining prices of stainless steel indicate the slow recovery in demand. In addition, the competition from suppliers in other regions adds further pressure to the market.
In summary, while there are positive signs of steel production increasing in Europe and sentiment improving in India, the steel market’s near-term outlook remains weak until a natural recovery can be seen. The industry needs to remain vigilant and successfully adapt to the ever-changing market dynamics to weather these challenging times.
