Stainless steel production and demand to hit a record in 2012

March 4, 2012 - PRLog -- Sahit Muja: Stainless steel production and demand to hit a record in 2012

Global stainless steel production in 2011 was 35 million tonnes, up 7% from 2010.
China's stainless steel production in 2011 was up to near 15 million tonnes, up by about 17% from 2010. The annual growth rate of the production, 17% in 2011.

European stainless steel  production in 2011 was 8 million tons. Japan's stainless steel products near 3 million tons.
Stainless steel does not corrode, rust, or stain with water as ordinary steel does.

Stainless steels of various kinds are used in thousands of applications in manufacturing, construction, cutlery, sinks, saucepans, washing machine drums, microwave oven liners, razor blades
cladding, handrails, door and window fittings, street furniture, structural sections, reinforcement bar, lighting columns, lintels, masonry supports
exhaust systems, car trim/grilles, road tankers, ship containers, ships chemical tankers, refuse vehicles, pressure vessels, process piping,
platform accommodation, cable trays,  pipelines, surgical instruments, surgical implants, MRI scanners.

Catering equipment, brewing, distilling, food processing, water and sewage treatment, water tubing, and hot water tanks.
The price of Chrome ore and ferrochrome, an essential ingredient in stainless steel, is set to jump after a series of production shutdowns in South Africa, the world’s largest producer

Furthermore, the recent upsurge in oil prices, inflation in the emerging markets alongside significant fluctuations in currency prices cannot be overlooked.
I expect stainless steel production to hit 40 million tons in 2012.
Global demand and prices for chrome ore, iron ore and ferrochrome, a key ingredient for making stainless steel, is likely to continue to increase in 2012.

High energy, oil and gas prices now set the stage for even sharper increases in the costs for mining and transportation of iron ore and chrome ore ingredients for steel.
The Chinese steel industry has a record steel output in 2011 to meet soaring demand from infrastructure and social housing projects.

Strong economic growth and urbanization in China, India, Brazil and other nations are expected to create growing demand for steel in 2012 .
The chrome ore and ferrochrome prices will increase do to strong demand and problems with export ban and the high costs of production.
Also, chrome ore shortage is expected as Zimbabwe has banned the export of chrome ore.

Many chrome ore companies in Kazakhstan, India, Turkey, Albania have stop mining chrome ore do to  the winter conditions, this will effect the global chrome ore prices and production.

The concern over the depleting reserves of chrome ore in India, the steel ministry has demanded a complete ban on chrome ore exports.
Such supply condition may drive prices of ferrochrome and chrome ore up in 2012.
Ferrochrome production for metallurgical applications uses more than 90% of the world's chrome ore.

Sahit Muja
President and CEO
Albanian Minerals
New York

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Albanian Minerals is Metal Mining and trading Company one of fastest growing mineral company in Europe