Economic crisis drives 2008 stainless production lower

The world stainless steel production reached 25.9 million metric tons (mmt) in 2008 according to preliminary figures released today by the International Stainless Steel Forum (ISSF). The total is 6.9% lower than 2007 level. After a decrease of 2 % in 2007, this is the second year in a row that world stainless steel production has decreased. Beyond the normal seasonal factors of our industry, 2007 as well as 2008, turned out to have the same pattern: excellent first half, extremely depressed second half. The external raw materials price volatility and the overall worldwide economic situation added to the turmoil The first half of 2008 turned out as being quite positive. By the third quarter, the financial and economic crisis combined with a massive drop in raw material prices – nickel being no exception – struck massively all cyclical industries. Our industry did not escape, on the contrary. Due to overstocks, reduction of excess inventories bought at inflated prices, complete stop of purchases from distributors and some end users, in a matter of weeks we moved from a bright future to a gloomy environment