Analysis of the supply and demand status and development prospects of the global stainless steel market in 2021 China is the main producer of stainless steel

Analysis of the supply and demand status and development prospects of the global stainless steel market in 2021 China is the main producer of stainless steel

1. Global stainless steel production has fallen, with China as the main producer

From 2010 to 2019, the global stainless steel production increased from 31.094 million tons to 52.218 million tons, with an average annual compound growth rate of 5.93%. The increase in supply mainly came from China. Many major changes have taken place in the global economic situation in 2019. The US trade war has triggered many uncertain factors, leading to weak global economic growth and slowing down of stainless steel production growth.

In 2020, global stainless steel crude steel production totaled 50.89 million tons, a year-on-year decrease of approximately 2.5%. With the exception of China, global stainless steel crude steel production decreased by 2.065 million tons year-on-year, a decrease of 9.05%. Global stainless steel production in the first three months of 2021 increased by 24.7% year-on-year to 14.5 million tons

In 2020, except for Mainland China, several major regions will have different degrees of decline. In 2020, China's stainless steel production accounted for 59.2% of global stainless steel production; the proportion of stainless steel production in Asia (excluding China and South Korea) and Europe was 12.61% and 12.41%. The United States accounts for 4.2% of stainless steel production. It can be seen that Asia is the world's main stainless steel production area, and China is the world's largest stainless steel producer.

2. Global stainless steel is mainly used in metal products and mechanical engineering

International Stainless Steel Forum (ISSF) data show that by 2019, the global stainless steel consumption is about 44.71 million tons. The consumption of stainless steel in 2020 has fallen by only 2%. In 2020, the main global consumption of stainless steel will be in metal products and mechanical engineering, with consumption accounting for 37.7% and 28.7% respectively.

3. Global stainless steel production will continue to grow, with China as the main growth driver

Global stainless steel production is showing a growth trend, but the growth in 2020 will mainly occur in Asia, mainly in China. Due to the impact of the epidemic and increasing pressure on global economic growth, the growth rate of stainless steel production is expected to slow further. It is expected that the growth rate in 2021 will still be relatively slow, and the main increase will continue to be mainly in China and Indonesia, and negative growth in other regions may still occur. Prospectively, global stainless steel production will reach 65.51 million tons by 2026, with a compound annual growth rate between 2020 and 2025. About 4.3%.

4. Global stainless steel consumption will continue to grow

According to the International Stainless Steel Forum (ISSF), Tim Collins, Secretary-General of the International Stainless Steel Forum (ISSF), said that global stainless steel consumption in 2020 will only fall by 2% year-on-year, but there are large regional differences. The overall consumption in China increased by 6.5%, while consumption in the rest of the world fell by 11.3%-12.6%. As countries get rid of the epidemic, the demand for stainless steel is rapidly recovering recently, and global demand is expected to increase by 9.0% to 10.0% in 2021. It is estimated that by 2026, global stainless steel sales will reach 63.91 million tons.