Global production of stainless steel was largely flat in the first quarter, reflecting poor demand especially in top producer China, where the pace of economic growth has slowed, industry data showed on Tuesday. Stainless steel output edged up just 0.1 percent in the first three months of 2015, from a year earlier, to 10.4 million tonnes, with declines in Europe and China offset by gains in Asia and the Americas, according to the International Stainless Steel Forum (ISSF).
"Decreased (stainless steel) production reflects weak demand overall. Growth has slowed tremendously in China (and) the increased capacity they've built has vastly inflated the problem," said MEPS analyst Bryan Hall. China, which produces about half the world's stainless steel, saw output fall 1 percent year-on-year to 5 million tonnes in January-March.
That followed a 14 percent jump in Chinese output for the whole of 2014 to 21.7 million tonnes. The slower pace of output growth in China and beyond, however, was not enough to boost global stainless steel prices, which are being hit by the poor demand and persistent oversupply.