The stainless steel market in 2024 is expected to continue to witness many fluctuations. How will these fluctuations affect the price of this product? Where should businesses aim to achieve the most positive results? These questions will be clarified through the content of the article.
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Forecasting the world’s stainless steel market in 2024 in the context of war in Ukraine and Russia
After the difficult period due to the Covid-19 pandemic, the world continues to face many economic difficulties when activities stagnate, especially after the impact of Covid-19, with many fluctuations. politically. Most notable is the escalating conflict, leading to war between Russia and Ukraine.
Since the beginning of 2022, when the war between Russia and Ukraine began, the stainless steel manufacturing industry has faced many severe impacts. This starts with the increase in prices of steel products, such as quality stainless steel pipes, stainless steel materials and household accessories. The main reason is that both Russia and Ukraine are suppliers of coal (raw material for the steel industry) and are also large stainless steel producers and exporters in the world. In addition, Russia also occupies a large position in the global supply of nickel and aluminum.
Forecasting the world stainless steel market in 2024
Sanctions and embargoes imposed on Russia will lead to an imbalance in supply and demand in the stainless steel market in 2024, thereby pushing up steel prices. The steel shortage in the European market is becoming more serious, creating challenges and opportunities for other steel export markets, including Vietnam.
Van Kleef announced that in the third quarter, demand for stainless steel scrap increased suddenly, although supply remained limited mainly due to a slow decline in production activities.
“Global stainless steel production will likely continue to increase in 2023,” he said. ‘Experts predict growth of around 3% or even 4% for the year. Once again, the expansion comes from China.”
Asia Is Unstable
According to The Mirror’s Asia section, the region’s stainless industry reached a bottom in prices and demand in August before rebounding in September. “But no one can predict whether this small recovery will just a temporary phenomenon or the beginning of a slow uphill battle.”
The report also said that, entering the fourth quarter, the situation for stainless steel scrap demand appears gloomy, with the market likely to remain in a narrow range due to low scrap volumes from manufacturing activities due to the recession. global economy and low prices, affecting production levels for stainless steel end products.
According to the latest data from the Indian Stainless Steel Development Association, domestic consumption grew nearly 10% in the most recent financial year, reaching 4 million tons, while global stainless steel production fell 5.2%. % from 58.2 million tons in calendar year 2021 to 55.2 million tons in 2022.
Asia Is Unstable
Other Areas
The US Department of Commerce reported that the United States exported more than 267,000 tons of recycled stainless steel in the first half of 2023 – a 78% increase over the same period in 2022. Improvements from Mexico, India and Taiwan were the driving force is responsible for this growth.
In the Middle East, the growing demand for stainless steel in many industrial sectors is an important feature of developments in the Gulf Cooperation Council region. The Mirror says: “An increase in construction projects and infrastructure developments is stimulating demand for this metal-containing material.”
“The 2024 stainless steel market is likely to increase in price,” added. ‘Construction activity in the UAE increased by almost 50% in the second quarter of 2023, despite higher raw material costs. This increase was led by the domestic residential sector but commerce and infrastructure were also vibrant, with activity levels increasing by 35% and 44% respectively.
Domestic stainless steel market forecast 2024
Entering 2024, many experts predict that Vietnam’s 2024 stainless steel market will have many new advances compared to 2023. Mr. Dinh Quoc Thai, General Secretary of the Vietnam Steel Association, said the expected stainless steel consumption is expected to increase by 7% to 21.7 million tons, while output can reach nearly 29 million tons, up 7% compared to 2023. One of the main reasons is due to projects such as the North-South expressway and the airport. Long Thanh was deployed and accelerated.
Another good news for Vietnam’s steel industry as the real estate market is expected to recover in 2024. According to CBRE’s report, apartment supply is expected to improve, with an expected increase of 33% in 2024 in Hanoi, reaching about 20,000 apartments, and increasing 31% in Ho Chi Minh City, reaching about 12,000 apartments.
For the 2024 stainless steel export market, the EU and US markets have shown signs of recovery, affecting the output and price of exported stainless steel. It is expected that export stainless steel prices will increase 9% in 2024, helping to improve gross profit margins for stainless steel export businesses.
Mr. Pham Quang Anh, Director of the Vietnam Commodity Exchange (MXV) Information Center, assessed that the Government will continue efforts to accelerate public investment disbursement in 2023, promoting breakthrough growth.
Domestic stainless steel market forecast 2024
Prospects for recovery of the world stainless steel market in 2024
Although the political situation is still tense and monetary policies are tightened, predictions for the world’s stainless steel market in 2024 are still positive with expected progress.
According to forecasts of the World Steel Association (WSA), global stainless steel demand is expected to recover by 1.9% compared to 2023, reaching 1.8 billion tons. The EU and Indian markets are expected to recover at 5.6% and 7.5%, respectively.
India ranks first with impressive stainless steel consumption growth, despite facing pressure from high interest rates. The government’s infrastructure investment policy has contributed greatly to significant development in the industrial construction sector. Not only that, stainless steel consumption in the automotive and consumer goods industries also makes an important contribution. It is expected that India’s stainless steel consumption will increase by 7.7% (135.8 million tons) by 2024.
For the Middle East and North Africa, it is predicted that stainless steel consumption will decrease in 2023 with a negative growth of 3.5%, but will recover in 2024 due to the implementation of many infrastructure and housing projects. stagnated from previous years.
Stainless steel demand in Latin America is expected to increase by 2.1% in 2024. The main reason is that issues related to rising interest rates and inflation are no longer a big challenge when some countries have relaxed policies. currency.
The year 2024 is most expected to be the time when the world economy shows signs of recovery after the decline. After considering many aspects and analyzing data, there is much hope for Vietnam’s steel industry.
Above is the 2024 stainless steel market prediction that Hoa Giang Inox compiled. As a supplier of high quality stainless steel products, Hoa Giang Inox hopes to continue to accompany and serve our valued partners in this promising new year. If you need to purchase large quantities of stainless steel or process stainless steel interior and exterior equipment, please contact Hoa Giang Inox immediately for advice and an accurate quote!
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