Global Market Outlook on Stainless Steel

  • Asia would continue to dominate the market in terms of growth prospects until 2019 
  • Growth in the consumption of chemical/petrochemical & energy, consumer goods & medical, and automotive & heavy transport mainly contributed to increased consumption in APAC 
  • Supply glut and curtailment measures by suppliers would impact the production


Stainless Steel Market Overview - Global

  • The market demand is expected to grow by 3 percent until 2020. Global development in urbanization, modernization, and growth in automotive industry, coupled with growing global demand for energy and water, is expected to support the global stainless steel demand in near future

  • Global stainless steel production was 48.12 MMT, in 2017, an increase of 5 percent compared to 2016. China accounted for 47 percent of the global stainless steel production in 2016 
  • Global stainless steel consumption was estimated 39.45 MMT, in 2017. The growth in key end-use industries supported the improvement in stainless steel consumption. However economical uncertainty in China prevented a significant increase in the stainless steel consumption during 2017
  • Stainless steel production is in US estimated to increase by 2-3% and reached 3.28 million metric tons in 2017. Stainless steel mills will increase their output in alignment with improving demand. Stainless steel demand is estimated to increase by 1-2% and reach 3.58 million metric tons in 2017. The steady recovery in the US manufacturing and construction sectors will result in growth in stainless steel demand

  • Global development in urbanization, modernization and growth in automotive industry coupled with growing global demand for energy and water is expected to support the global stainless steel demand in near future
  • About 72 percent of the global stainless steel demand during 2017 was from Asia (27.04 MMT). This was driven by robust growth due to solid infrastructure and property sectors
  • China saw an increase in metal consumption. However the heavy industry showed slower growth compared to the past few years. The Consumer Goods and Medical segment had significant growth during this time, whereas chemical, petrochemical and energy industries were weak

  • Demand from the EU was valued at 7.3 MMT, in 2017. Low oil prices, and less expensive credit kept the consumption rate flat at this rate.However the demand is set to rise in 2018 due to growth in construction industry 

  • Eastern Europe and Africa showed robust growth rates of 10 percent and 5 percent, respectively. In major Western European countries, consumption in Germany and Italy grew at 2 percent, while consumption levels in France declined 

  • In the Americas, demand was at 3.97 MMT for 2017, driven by higher investments in automotive and manufacturing sector

Consumption by End Use (2017)

  • Stainless steel is a widely used material that plays a key role in many important areas.
  • The increased European consumption in 2017 was mainly driven by the higher demand from automotive, heavy transport and consumer goods, and medical segments 
  • The demand growth was slow during 2016 because of the fluctuations in the European economy and the reduced growth rate in the Chinese economy

Mergers and Acquisitions

  • Stainless steel makers are opting for mergers and acquisitions to gain access to new technologies, to reduce the time to market for the services and to enter new markets in terms of geography and service 
  • The number of mergers and acquisitions (M&As) in the global steel industry rose by 19 percent to 115 deals in 2015 from 97 deals in 2014