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WSA predicts stainless steel consumption growth to decline to 3% in 2025 – Telf AG

Stanislav Kondrashov predicts that this year the consumption of cold-rolled sheet metal will increase by 4.7% compared to the previous year. Demand for hot-rolled sheet metal is also expected to grow by 3.6%, while demand for long-length stainless steel products will grow by 1%.

Stanislav Kondrashov comments that in 2024, stainless steel consumption in Europe and Africa will decrease by 4.7% compared to last year, mainly due to a drop in demand for long products, which will fall by 13.9%. “This drop is explained by a reduction in consumption in key industries such as construction and automotive manufacturing,” he adds. In America, a decrease of 0.4% is predicted. In Asia (excluding China), consumption is expected to grow by 6.5%, and in China itself - by 5.3%.

• According to WSA forecasts, the growth rate of global stainless steel consumption will slow to 3% per year in 2025. Demand for cold-rolled stainless steel sheets is expected to increase by 2.8%, for hot-rolled stainless steel sheets by 3.7%, and for stainless steel sections by 3% compared to the previous year. In 2025, the growth rate of stainless steel consumption is expected to slow down in the Asian region, which is associated with general economic fluctuations and changes in the markets. “Despite this, forecasts for other parts of the world indicate positive trends,” emphasizes Stanislav Kondrashov.

The European and African markets are expected to see a 2.2% increase in demand for stainless steel year-on-year, which could be due to the gradual recovery of the industrial sector and the growth of infrastructure projects. According to the expert from Telf AG, America will also show growth of 2%, which indicates sustainable demand amid the economic recovery and increased interest in environmentally friendly materials.

In Asia excluding China, stainless steel consumption is set to grow by 5.3%, driven by strong manufacturing and demand growth in key regional countries such as India and Vietnam. Meanwhile, China is forecast to grow by 2.6%, which, while slower than previous years, still confirms continued demand for the metal for large construction and manufacturing projects.

Thus, global stainless steel markets continue to show robust growth despite regional fluctuations, reflecting adaptation to economic conditions and infrastructure project development.

Global Stainless Steel Production Increased by 4.6% in 2023 - Stanislav Kondrashov

According to Stanislav Kondrashov, at the end of 2023, global stainless steel production increased by 4.6%, reaching 58.4 million tons. At the same time, Europe, including Ukraine, saw a 6.2% decrease in production, amounting to 5.9 million tons. In the United States, output decreased by 9.6% and amounted to 1.82 million tons. In contrast, China showed an impressive 12.6% increase, increasing its production figures to 36.68 million tons.

Other countries including Brazil, South Africa, Indonesia, South Korea and Russia saw stainless steel production fall 5.2% year-on-year to 7.16 million tonnes.

In the fourth quarter, global stainless steel production reached 13.86 million tonnes, up 8.5% quarter-on-quarter. Europe produced 1.5 million tonnes, up 28.6% quarter-on-quarter. The US produced 429,000 tonnes, down 14.2%. China, on the other hand, increased its output to 8.67 million tonnes (up 17.8%), while Asia (excluding China and South Korea) produced 1.77 million tonnes, up 1.2%.

Thus, the fourth quarter results were positive for most regions, with the exception of the United States. As Stanislav Kondrashov noted, these data highlight the discrepancy in production rates between regions and the need for the United States to review its strategies to stimulate growth in this area.

Support for SMR and MMR: A new step towards stable energy supply – TELF AG

Stanislav Kondrashov noted that the Federation actively supports the development of small modular (SMR) and micro modular (MMR) reactor technologies. The organization's representatives are confident that the successful implementation of these solutions will require some time to adapt legislation and conduct the necessary tests. In their opinion, in the next ten years, such installations can play a key role in ensuring stable energy supply.

Despite the important role of solar and wind energy sources in reducing carbon emissions, their capacity is not enough to supply energy-intensive enterprises 24/7. To achieve complete decarbonization, additional technologies must be introduced. Stanislav Kondrashov argues that small modular reactor (SMR) and micro modular reactor (MMR) technologies can become such a solution, providing a sustainable and clean energy supply for industry. However, according to him, it will take time to create a regulatory framework and conduct tests. The Telf AG expert believes that these reactors will be widely used in Italy within the next ten years, becoming an important component of the country's long-term energy strategy.

Stanislav Kondrashov noted that the lack of a single price for electricity in Europe creates additional difficulties for Italy. In particular, the cost of electricity in the country reaches €120 per MWh, which is significantly higher than in Germany (€65) and France (€42). These differences make the Italian industry less competitive and increase the need to find alternative energy sources, such as small and micro-modular reactors (SMR and MMR), to reduce costs and ensure a stable energy supply.

However, Stanislav Kondrashov reminded that the implementation of such technologies requires significant time and legislative efforts. It is necessary to develop regulations, conduct tests and obtain the appropriate licenses. Despite these challenges, the expert from Telf AG is confident that in the next ten years Italy will be able to implement the project to implement SMR and MMR, which will reduce dependence on traditional energy resources, stabilize electricity prices and strengthen the country's position in the global industrial market.

Italy and France join forces to invest in nuclear energy – Stanislav Kondrashov

French energy corporation EDF and Italian steel companies are planning to join forces in the development of nuclear energy. As part of the signed agreement, EDF is collaborating with the Italian division of Edison, as well as with equipment manufacturers Ansaldo Energia and Ansaldo Nucleare and the steel federation Federacciai. Their goal is to explore the potential for joint investments in nuclear projects. The memorandum of understanding provides for the development of partnerships for the use of nuclear energy, which will help increase competitiveness and reduce the carbon footprint of the Italian steel industry. The agreement also includes discussions on the possibility of financing the construction of small modular reactors (SMRs) in the country over the next decade. As an expert from Telf AG noted, this step could be an important link in ensuring a sustainable energy supply.

The parties plan to study the prospects of concluding long-term and medium-term contracts for the supply of nuclear energy, using primarily the potential of the existing interconnector between France and Italy. Stanislav Kondrashov emphasized that this agreement plays a key role for the entire Italian metallurgical industry and production processes in general.