Strong demand! Global stainless steel production is expected to increase by 11% year

MEPS raised its forecast for global crude steel production growth in 2021, predicting that global crude stainless steel production will grow 11% year-on-year to 56.5 million tons in 2021. Indonesia's output grew more than expected in the first quarter, with strong growth in China supporting supply expectations.Indonesia's stainless steel production reached a record high of 1.03 million tons in the first quarter. Indonesia's shipments to Europe surged in the first quarter. In May, Europe began imposing anti-dumping duties on cold-rolled stainless steel rolls from Indonesia that had arrived in Hong Kong.India is expected to produce 3.9m tonnes of stainless steel this year, with strong demand from European industry driving export sales in the first quarter. However, india's position as the world's second-largest stainless steel producer will be in tate as Indonesia pushes for new capacity investment.China's stainless steel production is expected to increase to 31.9 million tons, the first half of the steel industry production restrictions have limited impact on stainless steel production. In the second half of the year, the government took measures to curb exports in order to achieve the target of production cuts.Stainless steel production in South Korea, Japan and Taiwan is expected to exceed last year's level, and it is not yet known how much it will be affected by the fire at the Kaohsiung plant in Taiwan, China, which is expected to be lower this year than it was before the outbreak.European stainless steel production is expected to grow by double digits to 6.95 million tonnes. Due to the weather, production will decline in the third quarter, flooding in northern Europe has caused damage to steel production and logistics, and is expected to gradually resume in the fourth quarter.U.S. stainless steel production is expected to grow 15 percent year-on-year to 2.46 million tons. Although the capacity utilization rate of steel mills has exceeded 80% since the end of May, it is still unable to meet strong domestic demand.Despite global production growth, most markets experience varying degrees of supply shortages. Global end-user consumption is in good shape due to stimulus packages and positive expectations in the post-epidemic era. Low inventory levels have exacerbated supply constraints. As a result, prices are likely to come under sustained upward pressure in the medium term. 

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