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According to the British analytical agency MEPS International Ltd., global production of crude stainless steel has dropped to about 50.7 million tons in 2020 - almost 3% compared to the same period last year. This reduction is lower than originally expected at the start of the coronavirus pandemic.
However, this is the first decline in global production after four years of consistent growth. In the major raw stainless steel producing countries, only China and Indonesia overcame the negative trend. The supply of factories in these countries increased by about 2.5% and 15.5%, respectively, compared to the figures for 2019.
Last year, China's stainless steel production hit a record 30.1 million tonnes. This was due to the country's rapid economic recovery from the coronavirus-induced recession and the ability of national authorities to contain any increase in Covid-19 cases.
The pandemic has only slightly affected production in Indonesia. Production continued to grow as a result of increased production capacity and increased demand from export markets.
In many stainless steel producing countries, production is only now approaching pre-pandemic levels. Production growth in the fourth quarter was unable to offset the supply loss caused by the lockdown.
Production in the US and Japan fell more than 18% last year. The factories in Europe are doing a little better - by 7%. The recovery of stainless steel production in these three areas has been gradual. However, the surge in demand leads to a shortage of material.
Global production is projected to rise to 54 million tonnes in 2021. Economic activity is expected to improve and stainless steel capacity will gradually increase this year. This is especially the case in Indonesia, where production is projected to remain higher than in many more developed countries. However, market confidence is likely to improve with the rollout of vaccinations in developed countries.
