Global stainless steel demand is set to reach 38.0 million mt this year and 39.2 million mt in and 2017, with global consumption expected to increase at an annual average growth rate of around 3% from 2016 through 2019, Finnish stainless producer Outokumpu said Wednesday in its 2015 annual report.
Global real demand for stainless steel products reached 37.7 million mt in 2015, with a modest increase of around 2% from 37.1 million mt in 2014, after annual average growth of around 8% in 2011?2014, Outokumpu said, citing figures from German consultancy SMR.
"The deceleration of growth was most pronounced in the APAC and Americas regions, where the growth slowed markedly below the average rates of previous years," Outokumpu said.
"Slowing economies in emerging markets, notably China, broad-based weakness in global manufacturing and deteriorating nickel prices resulted in weaker demand growth in 2015 compared with previous years," it added.
Of the end-user segments, the chemical, petrochemical and energy segment contracted by 2% on retreating oil prices, whereas the automotive and heavy transport and consumer goods and medical segments were the most resilient, both at 3% growth in 2015 compared with 2014, the company said.
Looking ahead, growth for 2016-19 is likely to be driven mainly by increased consumption of around 3%/year in APAC, while demand in EMEA and the Americas is estimated to increase by around 1%/year in both regions.
"Growth is expected to be broad-based between the end-use segments, with the consumer goods and medical and ABC and infrastructure segments showing the most robust annual growth of around 4% between 2016 and 2019," Outokumpu said.
"The automotive & heavy industry and industrials & heavy industries segments are estimated to grow at average rates of 3% and 1%, respectively.
Meanwhile, the chemical, petrochemical & energy segment is forecast to show no growth between 2016 and 2019," it added.
Outokumpu's stainless steel deliveries reached 2.381 million mt last year. The company had an approximately 30% share of cold-rolled stainless steel deliveries in Europe and a roughly 8% share globally in 2015.
