It seems with Euro”s issues and the fate of Greece, Spain and other weak countries in doubt, markets will continue to weaken. Good luck to us all!!!

UK based MEPS said that stainless steel markets across the globe are experiencing slow business activity due to raising concern over economic conditions, seasonal buying patterns and low transaction values.

Purchase volumes in majority of the European countries have reached record low values. Basis values are near to breakeven levels and the price of LME nickel has reached a record low value since 2009. Buyers are cautious as expected, considering the overall economic condition. Politicians and business experts have started analyzing the effects of Greece’s possible exit from the Euro currency and default due to the country’s debt crisis. The fate of Greece will have an impact on the eurozone’s other weakest countries, including Ireland, Portugal, Spain and Italy.

Scandinavia”s financial systems are less affected by the downturn in the south of Europe which is an encouraging sign. Moreover, meaningful investment has been made in North Sea oil interests of Norway, and truck and yellow good manufacturers in Sweden continue high export levels with developing countries like Brazil.

The US industrial activity has recovered rapidly and strongly when compared to Europe. Nevertheless, markets in the US are currently at a halt. In addition, considering the surplus production, domestic suppliers are facing stiff contest from imports from Europe and Asia.

China”s growth rate in output and consumption has also been decelerated in the last one year. Far East is suffering from significant overcapacity due to huge recent investments made in new plants. Thus, all key stainless steel manufacturing countries in the region are now exporting their surplus output to one another. One hope is that the Chinese government is expected to introduce a new stimulus package valued at CNY 2 trillion to stimulus growth. At this point, the government expects to promote greater private-sector partnership.

Source – MEPS – Stainless Steel Review