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Following a production slump last year, global stainless steel production is projected to rise sharply to 55 million tonnes in 2021, according to British think tank MEPS International Ltd.
This is more than 8% higher compared to the figure recorded in 2020. China is the main driver of the projected production growth this year. Chinese steel mills have responded to strong domestic demand, fueled by government incentives, and rising prices around the world.
US production is projected to grow 16% year-over-year, but not hit 2019.
In the European Union, growth is expected to be over 10% in 2021. MEPS production forecasts for Europe were raised to 7 million tonnes due to high production volumes reported in January and February this year.
MEPS lowered its forecast for Taiwan to 890 thousand tons. A major industrial fire is expected at the Yieh Corp. in Kaohsiung will lead to a significant reduction in supplies in the second quarter of this year. Double-digit percentage growth in production in Japan, South Korea and India is projected to fill the gap.
Indonesia's production will increase 7.6% year on year to over 3 million tonnes in 2021. Production at the local producer, Tsingshan, remains strong despite the imposition of temporary anti-dumping tariffs on exports to the European Union.
Steel mills around the world, which were idle at the start of the pandemic, are gradually recovering. However, demand from end users is outstripping production growth. Consequently, prices rise as buyers struggle to find the source material. The availability of materials is expected to increase as production increases.
