According to the latest ‘Stainless Steel Report June 2013' issued by Germany-based service centre Damstahl, in the first quarter of the current year European stainless crude steel production reached 2 million mt, rising 20 percent over the fourth quarter of 2012 but falling around three percent compared to the corresponding period of 2012.
In Germany, Sweden and Slovenia, the combined total production amounted to 500,000 mt in the first quarter of 2013, falling 13 percent compared to the same period of 2012 and up 14 percent compared to the previous quarter. Damstahl noted that Germany's production dropped by 16 percent year on year in the first quarter, mainly due to the winding down of Outokumpu's Krefeld melt shop.
According to the report, in the first quarter of the current year demand in Europe showed a moderate improvement over the fourth quarter of 2012, but was substantially below the demand level in the first quarter last year. For the second quarter, Damstahl expects no significant change compared to the first quarter of the year.
Meanwhile, Damstahl said that the construction sector indicates a mixed picture in Europe, with higher building activity in Germany, the UK and the Netherlands, and with lower activity in countries like Italy, Spain and France. Meanwhile, German car production showed a five percent year-on-year decline in the first four month of 2013, indicating that the European car industry will remain depressed in 2013. However, Damstahl predicted a growth of between three or four percent in the EU automotive sector in 2014.