By Helen Yuan/ Bloomberg
Kyoto: Global stainless steel production may gain 5.1% this year as China, the world’s largest producer of the corrosion resistant metal, continues to lead growth, the International Stainless Steel Forum said.
Global output will probably increase to 29.8 million metric tonne this year after rising 17% in 2006 to 28.36 million tonne, the Brussels-based organization said at a conference in Kyoto on 21 May. Production in Asia may rise 12% to 16.85 million tonne driven by China and India, it said.
China’s economic growth has exceeded 10% in the past five quarters, fueling demand for stainless steel, used in cookware and building. The nation’s stainless-steel output rose 68% to 5.3 million tonne in 2006, overtaking Japan as the biggest producer, according to the ISSF.
China’s production could increase 40% to 50% from last year’s output, Chai Zhiyong, president of Shanxi Taigang Stainless Steel Co. said in an interview in Kyoto on 21 May.
The ISSF, which represents companies including ThyssenKrupp SA, Arcelor Mittal, and Taigang, didn’t give a specific forecast for China’s output this year. Production in Asian countries apart from China and India would either decline or remain unchanged, it said.