According to the International Recycling Bureau, the expected growth is up to 4% next year, led by China, bringing positive news for the stainless steel industry.
Its latest reflection highlights how global production activity remained sluggish in the third quarter, with Europe experiencing a significant downturn. However, Joost Van Kleef, chairman of the BIR stainless steel and special alloys committee, was more optimistic in his contribution.
“On the positive side, the end of the second quarter marked the conclusion of an unusually prolonged inventory reduction period caused by large volumes of flat and long stainless steel products imported into Europe from third countries last year. With imports and import penetration returning to normal levels, mills have gained some breathing space for their own production activities in Europe.”
Van Kleef reported that scrap demand increased significantly in the third quarter, although supply remained largely constrained due to sluggish production activity.
He stated, “Global stainless steel production is likely to increase annually in 2023. Analysts predict growth of about 3% or even 4% for the year. Once again, the expansion is driven by China.”
Unstable Asia
The Asian section of The Mirror noted that the regional stainless steel sector hit rock bottom in terms of prices and demand in August before recovering in September. However, it is uncertain whether this minor rebound is a dead cat bounce or the start of a slow and challenging recovery.
The report added that entering the fourth quarter, the demand outlook for stainless steel scrap appears bleak, with the market likely to remain in a narrow range due to low scrap volumes from reduced production activities caused by macroeconomic downturns and low production levels for finished stainless steel products.
According to the latest data from the Indian Stainless Steel Development Association, domestic consumption increased nearly 10% in the most recent fiscal year to reach 4 million tons, while global production of stainless steel decreased by 5.2% from 58.2 million tons in the calendar year 2021 to 55.2 million tons in 2022.
Other regions
The U.S. Department of Commerce reported that the United States exported more than 267,000 tons of recycled stainless steel in the first half of 2023 – an increase of 78% compared to the same period in 2022. Improved demand from Mexico, India, and Taiwan was the main driver for this growth.
In the Middle East, increasing demand for stainless steel across various industrial sectors is a significant feature of growth in the Gulf Cooperation Council region. The Mirror stated, “The rise in construction and infrastructure development projects is stimulating demand for this metal-containing material.”
“The stainless steel market is seeing rising prices,” it continued. “Construction activity in the UAE surged nearly 50% in the second quarter of 2023, despite higher raw material costs. This increase was led by the domestic residential sector, but commercial and infrastructure activities were also vibrant, with activity levels rising by 35% and 44%, respectively
