Russia increased stainless steel output by 49.7%

Russia increased stainless steel output by 49.7%

Since January 2010 until September 2010 the output of main stainless steel products rose to 91.38 thousand tons.

According to an expert appraisal by Spetsstal Association, since January till September 2010, as compared with the same period of 2009, the volume of stainless steel production rose 49.7% to 91.38 thousand tons.

Nearly all leading Russian stainless steel makers have managed to increase output. However, if compared with 2008, the current level of output still lags by 18.7%. To remind, since January 2008 until September 2008, Russian producers made 112.3 thousand tons of stainless steel. Within 2010’s same period best results have been shown by Mechel that holds a market share of 63%. Chelyabinsk Metal-Making Plant has increased stainless steel output by 62% and exceeded the level of both 2008 and 2009. Izhstal has grown stainless steel output by 41.2%. The restoration of output can also be traced with Zlatoust Metal-Making Plant that is with the Mechel group. Not bad results have been demonstrated by Ural Kuznitsa Plant.

Among the key stainless steel makers, Red October Plant and Electrostal can be marked as having increased output by 56.1% and 41.0%, respectively. In aggregate, the above-mentioned producers are controlling over 83.4% of stainless steel production while accounting for about 95% of stainless steel primary products.

The structure of Russian stainless steel making in 2010 (Jan-Sep) is formed by such product mix: flats with a production share of 50.0% (in 2009 - 49,0%), longs – 31.8% (32.2%), seamless tubes – 8.7% (8.8%), billets – 3.1% (4.4%), welded tubes – 3.5% (2.7%) and forged pieces – 2.9% (3.2%).

Comparing with 2009, the stainless steel making structure has not significantly changed in this year, except for the making of welded tubes.

This signifies that local stainless steel producers, as before, are oriented on traditional sectors of consumption and are not in a hurry to enhance their production capacities. The only direction that is now actively developing is the building of new facilities for making stainless steel welded tubes. Many companies have already purchased tube welding mills and we expect the local welded tube making to increase significantly, although still basing on imports of stainless steel flats.

The Coming Event:

The Russian Special Steel Association (Spetsstal) is pleased to invite you to participate in the 5th annual international conference "Stainless Steel Price - 2011" which will take place on 17 February 2011 in the Radisson SAS Slavyanskaya Hotel Moscow.

For the fifth time the conference will gather world-renowned analysts to appraise the status quo and forecast on the global markets for stainless steel and raw materials. The scope of topics will address such issues as analyses in imports, exports, pricing and consumption in Russia and other regional markets.

To find more details and register, visit the event’s official website: http://inox-conference.ru/index_en.php

Before January 15, 2011, participation costs only 590 EURO.