The grouping of firm supply, strong demand and quick rises in the costs of energy, freight and chromite raw materials have increased the production of stainless steel in the market. The prices for chromite also increase due to the growth in the production of stainless steel. Improvement can be found in the ferro-chrome market due to the expansion in the production of stainless steel which is predicted to preserve well-built growth in the middle of 2000 directed by Asian demand.
The output of china increased from 1.8Mt in the year 2003 to 6Mt in the year 2008 along with increase in the growth in the subsequent 2-3 years. The latest expectations and increase in price of sustained expansion in demand have positive policies for considerable capacity development.
Worldwide stainless steel production projected to reach 25 million tons in the year 2005 and is estimated to reach 26 million tons in the year 2006. Development can be possible only in India and China in the year 2005. Decrease in the production of stainless steel can be estimated in most of the well developed countries.
Production of stainless steel reduced by 450,000 tons in the European Union in 2005 due to the cutting off output in an attempt to raise the prices. An increase can be anticipated to about 8.65 million tons in the year 2006 due to the reduction of inventories and increase in consumption.
European Union also face fall of about 100,000 tons of stainless steel in 2005 and increase their production in the next year. The production of stainless steel is also low in South Korea which greatly affects the market. In the US , the production was rationally fine in 2005. Stiff restricted demand increases the Indian production of stainless steel.
No increase in production of stainless steel is projected in Canada or Brazil as a result of unfortunate domestic consumption. It was anticipated that the production of stainless steel in the Western World in 2005 was 650,000 tons. Western world predicted about 3.5 percent increase in the production of stainless steel.
The production of china was estimated to more than 1 million tons in the year 2005 and the supply of Russia was found to be lower. The production of China is estimated to be slow in the year 2006. According to the International Stainless Steel Forum, a production of about 139 million tons of stainless steel was estimated in the first half of 2006.