According to the latest Stainless Steel Briefing February 2013 report issued by Germany based service centre Damstahl, in the first 11 months of 2012 European stainless crude steel production amounted to 7 million tonne falling 1% compared to the same period of 2011. Damstahl noted that in the October to November period of last year European crude steel production was 8% lower compared to the corresponding period of 2011. For the entire year of 2012 Damstahl predicts 7.5 million tonne of crude stainless steel production in Europe down from 7.6 million tonne in 2011.
According to the report the German stainless market has made a fairly strong start in 2013. Demand in January and the first indications for February looked promising. Stainless demand in the Netherlands increased slightly in January though order volumes in the Danish stainless steel market began to decline in late January after initially making a fairly good start to 2013. The stainless market in Sweden indicated a gradual weakening in the Q4 of 2012. December was weaker than the normal year end levels. The first weeks of January in Sweden appeared a little more promising but the general opinion is that 2013 will be a tough and stagnating year.
Meanwhile Damstahl said that stainless steel demand in Europe was stagnant in the Q4 of 2012. Since then the order intake has slightly improved at mills but it is more marginal than a real recovery. Damstahl forecasts that activity in the building and construction industry will remain flat this year and that the automotive industry will see a contraction of 3 to 7% in 2013 in Europe. However there are signs of a possible improvement in the economic situation in Europe in the current year.
