According to the latest 'Stainless Steel Report October 2013' issued by Germany-based service center Damstahl, in the first seven months of the current year European stainless crude steel production declined five percent year on year to 4.4 million mt.
During the first six months, stainless steel production continued to fall strongly in Germany, with a year-on-year decrease of 15 percent, while Sweden and Slovenia registered a seven percent decrease and nine percent increase respectively, both year on year.
According to the report, after a disappointing first six months with an annual decline in demand, the European market began to stabilize in the third quarter of 2013. Nevertheless, the situation differs between countries. Positive signals emerge in Denmark, Germany and Norway, while the other countries lag behind. For mills and virtually all distributors, the market situation is still far from 'satisfactory' and no substantial improvement is expected before early 2014. Stainless steel market players are remaining doubtful about increasing margins and/or volumes for the rest of 2013.
Meanwhile, Damstahl said that the various end-use segments in Europe indicate a strengthening market in 2014. Building and construction will rebound next year after a number of declines. The transportation industry will also return to growth next year.
