World Stainless Steel Industry Seeks Further Consolidation

World stainless steel industry seeks potential consolidation of stainless steel makers including in China. Members of International Stainless Steel Forum (ISSF) had session on Thursday to discuss solution for the oversupply in China and stable procurement of raw material as hottest issues at annual conference in Beijing. The members see the oversupply and volatility of raw material cost impact world demand and price of stainless steel.

Aperam’s chief executive officer Philippe Darmayan said members of ISSF discussed 2 million tonnes of stainless steel oversupply in Europe at the conference held in Berlin in 2003. Mr. Darmayan said the current oversupply is larger than the level in 2003 when the makers increased production capacity in Asia.

World makers posted loss in 2011 due to the oversupply and higher raw material cost. Nippon Steel & Sumikin Stainless Steel Corporation’s president Hiroshi Kinoshita said Japanese stainless makers should focus on challenges including slower domestic demand and volatile raw material cost through development of the technology.

The CEO of Outokumpu Mika Seitovirta, who seeks the merger with Inoxum, said potential consolidation of the makers and optimization in China.