damstahl stainless steel report #100 february 2016...better days may lie ahead for the benefit of...
TRANSCRIPT
Damstahl Stainless Steel Report No 102 - April 2016 1 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Damstahl Stainless Steel Report 102
April 2016
Damstahl Stainless Steel Report No 102 - April 2016 2 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Intro by Ilhami Alici 3
Stainless Steel at a Glance 4
European Industry News PMI Status 8
Relevant Issues in Damstahl Land 11
Imports all Damstahl Countries 12
Germany 14
the Netherlands 18
Denmark 22
Sweden 26
Norway 30
Slovenia 34
Finland 38
Raw Materials 42
Focus of the Month 47
Reflection of the Month by Markus Moll 55
Contents
Damstahl Stainless Steel Report No 102 - April 2016 3 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 3 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Faintly Seeing a Glimpse of Sun
Months of wintry cold conditions have put all stakeholders in the Stainless Steel industry under pressure Fortunately it now seems as if spring is upon us and we believe to see the first glimpse of sunlight in a cloudy sky for our industry as serious efforts are being made to balance supply and demand If successful better days may lie ahead for the benefit of all Ilhami Alici Deputy Manager COO Damstahl as Denmark
Damstahl Stainless Steel Report No 102 - April 2016 4 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 4
Stainless Steel at a Glance
Market
Belated Spring Awakening
bull Q116 was marked by a volatile raw material market and low demand leaving market participants only cautiously optimistic about how the winds blow for the rest of 2016
bull Inventories for flat products in Europe are on sufficient levels with no hurry to restock material as mill delivery times remained short
bull For late April or early May some mills signalled base price hikes Earlier attempts to raise base prices failed as demand was not strong enough to support them and material availability on a short notice was more than sufficient
Alloy Surcharge
bull Aprilrsquos monthly alloy surcharges for flat products rose for the first time in 2016
bull Outokumpu increased the surcharges for type 304 (14301) to 869 EURt (+5 mom) up from 827 EURt in March For type 316 the April surcharges were increased to 1191 EURt (+5 mom) up from 1134 EURt in March
Damstahl Stainless Steel Report No 102 - April 2016 5 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 5
Stainless Steel at a Glance
Building amp Construction
bull For January 2016 the European statistical office Eurostat reports an increase of production in construction of 44 in the EU28 and 60 in the euro area (compared with January 2015) The increase in the EU28 was mainly due to building construction rising by 53 and civil engineering falling by 08 while in the euro area building construction increased by 71 and civil engineering by 14 Highest increases were seen in Spain (+203) Sweden (+180) Slovakia (+164) Largest decreases were recorded in Slovenia (-234) Hungary (-202) Bulgaria (-107)
Consumer Goods
bull The German Association representing the Appliance industry (ZVEI) reports that the order intake increased again in February 2016 after decreasing a month earlier
bull Order intake increased by around 58 totalling 144 bn EUR seeing improved demand from both the domestic and the international markets
bull While orders from EU countries increased double-digits the order intake from outside Europe slightly declined
Damstahl Stainless Steel Report No 102 - April 2016 6 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 6
Stainless Steel at a Glance
Automotive
February continues with strong growth
bull The European Automobile Manufacturersrsquo Association (ACEA) recorded growth for the 30th consecutive month in February 2016 when new passenger car registrations increased by around 143 yoy totalling 1056902 units
bull Top 3 growth countries were Italy +273 France +130 Spain +126
bull Greece and Netherlands saw declining passenger car registrations of -324 and -150 respectively
Damstahl Stainless Steel Report No 102 - April 2016 7 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 7
Stainless Steel at a Glance
Process Industry
bull The German engineering association VDMA reports a growth in incoming orders for the month of February 2016 by roughly 7 yoy Both domestic and international demand showed solid growth at 12 and 5 respectively but the good result only partially managed to balance out the double-digit decline reported in January 2016
bull Also according to a chief economist of the VDMA last yearrsquos February level was not tough to beat and the growth mainly resulted from large-scale systems business with non-euro countries
bull For the full year 2015 VDMA rates the global machinery sales at around 2570 bn EUR increasing by around 10 but considering the developments on the main currency markets throughout 2015 the real growth value was only a humble 2
Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News PMI Status
bull European Industry News bull Where do we stand in the Business Cycle ndash PMI Status
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 2 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Intro by Ilhami Alici 3
Stainless Steel at a Glance 4
European Industry News PMI Status 8
Relevant Issues in Damstahl Land 11
Imports all Damstahl Countries 12
Germany 14
the Netherlands 18
Denmark 22
Sweden 26
Norway 30
Slovenia 34
Finland 38
Raw Materials 42
Focus of the Month 47
Reflection of the Month by Markus Moll 55
Contents
Damstahl Stainless Steel Report No 102 - April 2016 3 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 3 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Faintly Seeing a Glimpse of Sun
Months of wintry cold conditions have put all stakeholders in the Stainless Steel industry under pressure Fortunately it now seems as if spring is upon us and we believe to see the first glimpse of sunlight in a cloudy sky for our industry as serious efforts are being made to balance supply and demand If successful better days may lie ahead for the benefit of all Ilhami Alici Deputy Manager COO Damstahl as Denmark
Damstahl Stainless Steel Report No 102 - April 2016 4 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 4
Stainless Steel at a Glance
Market
Belated Spring Awakening
bull Q116 was marked by a volatile raw material market and low demand leaving market participants only cautiously optimistic about how the winds blow for the rest of 2016
bull Inventories for flat products in Europe are on sufficient levels with no hurry to restock material as mill delivery times remained short
bull For late April or early May some mills signalled base price hikes Earlier attempts to raise base prices failed as demand was not strong enough to support them and material availability on a short notice was more than sufficient
Alloy Surcharge
bull Aprilrsquos monthly alloy surcharges for flat products rose for the first time in 2016
bull Outokumpu increased the surcharges for type 304 (14301) to 869 EURt (+5 mom) up from 827 EURt in March For type 316 the April surcharges were increased to 1191 EURt (+5 mom) up from 1134 EURt in March
Damstahl Stainless Steel Report No 102 - April 2016 5 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 5
Stainless Steel at a Glance
Building amp Construction
bull For January 2016 the European statistical office Eurostat reports an increase of production in construction of 44 in the EU28 and 60 in the euro area (compared with January 2015) The increase in the EU28 was mainly due to building construction rising by 53 and civil engineering falling by 08 while in the euro area building construction increased by 71 and civil engineering by 14 Highest increases were seen in Spain (+203) Sweden (+180) Slovakia (+164) Largest decreases were recorded in Slovenia (-234) Hungary (-202) Bulgaria (-107)
Consumer Goods
bull The German Association representing the Appliance industry (ZVEI) reports that the order intake increased again in February 2016 after decreasing a month earlier
bull Order intake increased by around 58 totalling 144 bn EUR seeing improved demand from both the domestic and the international markets
bull While orders from EU countries increased double-digits the order intake from outside Europe slightly declined
Damstahl Stainless Steel Report No 102 - April 2016 6 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 6
Stainless Steel at a Glance
Automotive
February continues with strong growth
bull The European Automobile Manufacturersrsquo Association (ACEA) recorded growth for the 30th consecutive month in February 2016 when new passenger car registrations increased by around 143 yoy totalling 1056902 units
bull Top 3 growth countries were Italy +273 France +130 Spain +126
bull Greece and Netherlands saw declining passenger car registrations of -324 and -150 respectively
Damstahl Stainless Steel Report No 102 - April 2016 7 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 7
Stainless Steel at a Glance
Process Industry
bull The German engineering association VDMA reports a growth in incoming orders for the month of February 2016 by roughly 7 yoy Both domestic and international demand showed solid growth at 12 and 5 respectively but the good result only partially managed to balance out the double-digit decline reported in January 2016
bull Also according to a chief economist of the VDMA last yearrsquos February level was not tough to beat and the growth mainly resulted from large-scale systems business with non-euro countries
bull For the full year 2015 VDMA rates the global machinery sales at around 2570 bn EUR increasing by around 10 but considering the developments on the main currency markets throughout 2015 the real growth value was only a humble 2
Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News PMI Status
bull European Industry News bull Where do we stand in the Business Cycle ndash PMI Status
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 3 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 3 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Faintly Seeing a Glimpse of Sun
Months of wintry cold conditions have put all stakeholders in the Stainless Steel industry under pressure Fortunately it now seems as if spring is upon us and we believe to see the first glimpse of sunlight in a cloudy sky for our industry as serious efforts are being made to balance supply and demand If successful better days may lie ahead for the benefit of all Ilhami Alici Deputy Manager COO Damstahl as Denmark
Damstahl Stainless Steel Report No 102 - April 2016 4 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 4
Stainless Steel at a Glance
Market
Belated Spring Awakening
bull Q116 was marked by a volatile raw material market and low demand leaving market participants only cautiously optimistic about how the winds blow for the rest of 2016
bull Inventories for flat products in Europe are on sufficient levels with no hurry to restock material as mill delivery times remained short
bull For late April or early May some mills signalled base price hikes Earlier attempts to raise base prices failed as demand was not strong enough to support them and material availability on a short notice was more than sufficient
Alloy Surcharge
bull Aprilrsquos monthly alloy surcharges for flat products rose for the first time in 2016
bull Outokumpu increased the surcharges for type 304 (14301) to 869 EURt (+5 mom) up from 827 EURt in March For type 316 the April surcharges were increased to 1191 EURt (+5 mom) up from 1134 EURt in March
Damstahl Stainless Steel Report No 102 - April 2016 5 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 5
Stainless Steel at a Glance
Building amp Construction
bull For January 2016 the European statistical office Eurostat reports an increase of production in construction of 44 in the EU28 and 60 in the euro area (compared with January 2015) The increase in the EU28 was mainly due to building construction rising by 53 and civil engineering falling by 08 while in the euro area building construction increased by 71 and civil engineering by 14 Highest increases were seen in Spain (+203) Sweden (+180) Slovakia (+164) Largest decreases were recorded in Slovenia (-234) Hungary (-202) Bulgaria (-107)
Consumer Goods
bull The German Association representing the Appliance industry (ZVEI) reports that the order intake increased again in February 2016 after decreasing a month earlier
bull Order intake increased by around 58 totalling 144 bn EUR seeing improved demand from both the domestic and the international markets
bull While orders from EU countries increased double-digits the order intake from outside Europe slightly declined
Damstahl Stainless Steel Report No 102 - April 2016 6 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 6
Stainless Steel at a Glance
Automotive
February continues with strong growth
bull The European Automobile Manufacturersrsquo Association (ACEA) recorded growth for the 30th consecutive month in February 2016 when new passenger car registrations increased by around 143 yoy totalling 1056902 units
bull Top 3 growth countries were Italy +273 France +130 Spain +126
bull Greece and Netherlands saw declining passenger car registrations of -324 and -150 respectively
Damstahl Stainless Steel Report No 102 - April 2016 7 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 7
Stainless Steel at a Glance
Process Industry
bull The German engineering association VDMA reports a growth in incoming orders for the month of February 2016 by roughly 7 yoy Both domestic and international demand showed solid growth at 12 and 5 respectively but the good result only partially managed to balance out the double-digit decline reported in January 2016
bull Also according to a chief economist of the VDMA last yearrsquos February level was not tough to beat and the growth mainly resulted from large-scale systems business with non-euro countries
bull For the full year 2015 VDMA rates the global machinery sales at around 2570 bn EUR increasing by around 10 but considering the developments on the main currency markets throughout 2015 the real growth value was only a humble 2
Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News PMI Status
bull European Industry News bull Where do we stand in the Business Cycle ndash PMI Status
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 4 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 4
Stainless Steel at a Glance
Market
Belated Spring Awakening
bull Q116 was marked by a volatile raw material market and low demand leaving market participants only cautiously optimistic about how the winds blow for the rest of 2016
bull Inventories for flat products in Europe are on sufficient levels with no hurry to restock material as mill delivery times remained short
bull For late April or early May some mills signalled base price hikes Earlier attempts to raise base prices failed as demand was not strong enough to support them and material availability on a short notice was more than sufficient
Alloy Surcharge
bull Aprilrsquos monthly alloy surcharges for flat products rose for the first time in 2016
bull Outokumpu increased the surcharges for type 304 (14301) to 869 EURt (+5 mom) up from 827 EURt in March For type 316 the April surcharges were increased to 1191 EURt (+5 mom) up from 1134 EURt in March
Damstahl Stainless Steel Report No 102 - April 2016 5 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 5
Stainless Steel at a Glance
Building amp Construction
bull For January 2016 the European statistical office Eurostat reports an increase of production in construction of 44 in the EU28 and 60 in the euro area (compared with January 2015) The increase in the EU28 was mainly due to building construction rising by 53 and civil engineering falling by 08 while in the euro area building construction increased by 71 and civil engineering by 14 Highest increases were seen in Spain (+203) Sweden (+180) Slovakia (+164) Largest decreases were recorded in Slovenia (-234) Hungary (-202) Bulgaria (-107)
Consumer Goods
bull The German Association representing the Appliance industry (ZVEI) reports that the order intake increased again in February 2016 after decreasing a month earlier
bull Order intake increased by around 58 totalling 144 bn EUR seeing improved demand from both the domestic and the international markets
bull While orders from EU countries increased double-digits the order intake from outside Europe slightly declined
Damstahl Stainless Steel Report No 102 - April 2016 6 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 6
Stainless Steel at a Glance
Automotive
February continues with strong growth
bull The European Automobile Manufacturersrsquo Association (ACEA) recorded growth for the 30th consecutive month in February 2016 when new passenger car registrations increased by around 143 yoy totalling 1056902 units
bull Top 3 growth countries were Italy +273 France +130 Spain +126
bull Greece and Netherlands saw declining passenger car registrations of -324 and -150 respectively
Damstahl Stainless Steel Report No 102 - April 2016 7 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 7
Stainless Steel at a Glance
Process Industry
bull The German engineering association VDMA reports a growth in incoming orders for the month of February 2016 by roughly 7 yoy Both domestic and international demand showed solid growth at 12 and 5 respectively but the good result only partially managed to balance out the double-digit decline reported in January 2016
bull Also according to a chief economist of the VDMA last yearrsquos February level was not tough to beat and the growth mainly resulted from large-scale systems business with non-euro countries
bull For the full year 2015 VDMA rates the global machinery sales at around 2570 bn EUR increasing by around 10 but considering the developments on the main currency markets throughout 2015 the real growth value was only a humble 2
Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News PMI Status
bull European Industry News bull Where do we stand in the Business Cycle ndash PMI Status
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 5 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 5
Stainless Steel at a Glance
Building amp Construction
bull For January 2016 the European statistical office Eurostat reports an increase of production in construction of 44 in the EU28 and 60 in the euro area (compared with January 2015) The increase in the EU28 was mainly due to building construction rising by 53 and civil engineering falling by 08 while in the euro area building construction increased by 71 and civil engineering by 14 Highest increases were seen in Spain (+203) Sweden (+180) Slovakia (+164) Largest decreases were recorded in Slovenia (-234) Hungary (-202) Bulgaria (-107)
Consumer Goods
bull The German Association representing the Appliance industry (ZVEI) reports that the order intake increased again in February 2016 after decreasing a month earlier
bull Order intake increased by around 58 totalling 144 bn EUR seeing improved demand from both the domestic and the international markets
bull While orders from EU countries increased double-digits the order intake from outside Europe slightly declined
Damstahl Stainless Steel Report No 102 - April 2016 6 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 6
Stainless Steel at a Glance
Automotive
February continues with strong growth
bull The European Automobile Manufacturersrsquo Association (ACEA) recorded growth for the 30th consecutive month in February 2016 when new passenger car registrations increased by around 143 yoy totalling 1056902 units
bull Top 3 growth countries were Italy +273 France +130 Spain +126
bull Greece and Netherlands saw declining passenger car registrations of -324 and -150 respectively
Damstahl Stainless Steel Report No 102 - April 2016 7 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 7
Stainless Steel at a Glance
Process Industry
bull The German engineering association VDMA reports a growth in incoming orders for the month of February 2016 by roughly 7 yoy Both domestic and international demand showed solid growth at 12 and 5 respectively but the good result only partially managed to balance out the double-digit decline reported in January 2016
bull Also according to a chief economist of the VDMA last yearrsquos February level was not tough to beat and the growth mainly resulted from large-scale systems business with non-euro countries
bull For the full year 2015 VDMA rates the global machinery sales at around 2570 bn EUR increasing by around 10 but considering the developments on the main currency markets throughout 2015 the real growth value was only a humble 2
Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News PMI Status
bull European Industry News bull Where do we stand in the Business Cycle ndash PMI Status
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 6 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 6
Stainless Steel at a Glance
Automotive
February continues with strong growth
bull The European Automobile Manufacturersrsquo Association (ACEA) recorded growth for the 30th consecutive month in February 2016 when new passenger car registrations increased by around 143 yoy totalling 1056902 units
bull Top 3 growth countries were Italy +273 France +130 Spain +126
bull Greece and Netherlands saw declining passenger car registrations of -324 and -150 respectively
Damstahl Stainless Steel Report No 102 - April 2016 7 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 7
Stainless Steel at a Glance
Process Industry
bull The German engineering association VDMA reports a growth in incoming orders for the month of February 2016 by roughly 7 yoy Both domestic and international demand showed solid growth at 12 and 5 respectively but the good result only partially managed to balance out the double-digit decline reported in January 2016
bull Also according to a chief economist of the VDMA last yearrsquos February level was not tough to beat and the growth mainly resulted from large-scale systems business with non-euro countries
bull For the full year 2015 VDMA rates the global machinery sales at around 2570 bn EUR increasing by around 10 but considering the developments on the main currency markets throughout 2015 the real growth value was only a humble 2
Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News PMI Status
bull European Industry News bull Where do we stand in the Business Cycle ndash PMI Status
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 7 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 7
Stainless Steel at a Glance
Process Industry
bull The German engineering association VDMA reports a growth in incoming orders for the month of February 2016 by roughly 7 yoy Both domestic and international demand showed solid growth at 12 and 5 respectively but the good result only partially managed to balance out the double-digit decline reported in January 2016
bull Also according to a chief economist of the VDMA last yearrsquos February level was not tough to beat and the growth mainly resulted from large-scale systems business with non-euro countries
bull For the full year 2015 VDMA rates the global machinery sales at around 2570 bn EUR increasing by around 10 but considering the developments on the main currency markets throughout 2015 the real growth value was only a humble 2
Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News PMI Status
bull European Industry News bull Where do we stand in the Business Cycle ndash PMI Status
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 8 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News PMI Status
bull European Industry News bull Where do we stand in the Business Cycle ndash PMI Status
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 9 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
European Industry News
bull After losing around 600 mill EUR between 2010 and 2014 the Italian stainless mill Acciai Speciali Terni (AST) fought its way back and almost hit break-even in 2015 at an EAT of -85 mill EUR down from around -1177 mill EUR in 2014 The companyrsquos turnover rose to 1542 bn EUR corresponding to an increase of around 45 set against ASTrsquos turnover in 2014 The companyrsquos export share was 25 of which around one third was generated outside Europe
bull Aperam announced to have finished modernisation works at its annealing and pickling line in the Genk plant in Belgium The modernisation was carried out by equipment supplier Primetals Technologies during a three-and-a-half week shutdown in December 2015 In mid-January 2016 the plant was ramped-up again operating two electric arc furnaces vacuum and argon-oxygen decarburizers ladle refining a slab continuous caster and slab grinders
bull Outokumpu announced as a part of a new restructuring plan to reduce its workforce by up to 600 positions worldwide The company will start with up to 140 jobs in Finland and up to 90 jobs in Sweden Outokumpu also announced to downsize its staff at the Sheffield melting and continuous casting operations SMACC in the United Kingdom as well as to change the pension scheme into the companyrsquos defined-contribution pension scheme The total workforce reduction will bring down the headcount from 11000 at 31st of December 2015 down to around 9300 within the next few years The company further announced to cut down the number of business areas to three Europe Americas and Long Products Outokumpursquos APAC segment will be assigned to the Europe business area The changes will become effective on June 1st 2016
European Mills improve their lsquobottom-linesrsquo
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 10 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
30
35
40
45
50
55
60
65
Inde
x of
50
= lsquoB
reak
Eve
n Po
intrsquo
EU USA China
Where do we Stand in the Business Cycle
PMI Status March 2016 All signals up in March
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 11 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl Land
bull Flat Product Imports 2015 vs 2014
bull Long Product Import 2015 vs 2014
bull Relevant Issues Imports and Market Volume Index by country
Germany
The Netherlands
Denmark
Sweden
Norway
Slovenia
Finland
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 12 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Flat Product Imports 2015 vs 2014
Germany was last yearrsquos market stabiliser amongst all Damstahl Countries January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-5
37
-13
-13
-6
-8
4
-20 -10 0 10 20 30 40
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Chart1
Sheet1
Damstahl Stainless Steel Report No 102 - April 2016 13 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 13 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Long Product Imports 2015 vs 2014
Long products were more affected by the slowdown in the energy industry than flat products last year January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-7
13
-28
-1
2
-22
-4
-30 -25 -20 -15 -10 -5 0 5 10 15
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
| FP | |||
| Finland | -5 | ||
| Slovenia | 37 | ||
| Norway | -13 | ||
| Sweden | -13 | ||
| Denmark | -6 | ||
| Netherlands | -8 | ||
| Germany | 4 |
| Finland | |
| Slovenia | |
| Norway | |
| Sweden | |
| Denmark | |
| Netherlands | |
| Germany |
Sheet1
Damstahl Stainless Steel Report No 102 - April 2016 13 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 13 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Long Product Imports 2015 vs 2014
Long products were more affected by the slowdown in the energy industry than flat products last year January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-7
13
-28
-1
2
-22
-4
-30 -25 -20 -15 -10 -5 0 5 10 15
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
| FP | |||
| Finland | -5 | ||
| Slovenia | 37 | ||
| Norway | -13 | ||
| Sweden | -13 | ||
| Denmark | -6 | ||
| Netherlands | -8 | ||
| Germany | 4 |
Damstahl Stainless Steel Report No 102 - April 2016 13 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 13 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless Steel Long Product Imports 2015 vs 2014
Long products were more affected by the slowdown in the energy industry than flat products last year January ndash December
Source SMR - Steel amp Metals Market Research Analysis
-7
13
-28
-1
2
-22
-4
-30 -25 -20 -15 -10 -5 0 5 10 15
Finland
Slovenia
Norway
Sweden
Denmark
Netherlands
Germany
Chart1
Sheet1
Damstahl Stainless Steel Report No 102 - April 2016 14 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 14 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Germany
bull The German stainless steel market is missing dynamics as plenty of material is still in the warehouses and the demand remains on a steady level After a weak start into 2016 also the building and construction industry within Germany has picked up again in March mainly due to a more lively demand than in early 2015 as the demand keeps on rising
bull GEA announced in early April 2016 to have successfully concluded the acquisition of Imaforni an Italian equipment supplier to the biscuits industry headquartered in Verona Imaforni is complementary to GEArsquos takeover of Comas a manufacturer of industrial processing equipment in the cake and pastry industry in mid 2015 and will further enhance GEArsquos capabilities in the food industry In 2015 Imaforni generated a revenue of 35 mill EUR
bull Kroneslsquo revenue rose in 2015 by 75 to 317 bn EUR (2014 295 bn EUR) New order intake in 2015 was 319 bn EUR up from 304 bn EUR in 2014 (+49 yoy) The companyrsquos EBT rose 164 from 1918 mill EUR in 2014 to 2233 mill EUR in 2015 Kronesrsquo EAT totalled 1563 mill EUR corresponding to an increase of around 152 set against the 2014 EAT of 1357 mill EUR For 2016 Krones expects to see revenues growing by around 3
Damstahl Stainless Steel Report No 102 - April 2016 15 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 15 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports of Stainless Steel Products into Germany
Increases at most high-volume products outweigh declines at round bars profiles and tube products CRR = Coils for re-rolling are not counted in total
Imports by Product
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 23905 35998 50557 30482 40680 44344 37076 45664 38756 49700 38878 34562
therefrom CRR (Finland-Sweden) 8817 15244 24952 11418 18050 22049 14817 25345 19867 25054 20001 17739
HR Sheet amp Plate real 15088 20754 25605 19064 22630 22295 22259 20319 18889 24646 18877 16823
CR Sheet 55543 65066 70540 66332 66877 72873 78347 52988 71377 69715 66234 45457
Round Bars 13658 15071 13766 14225 13308 13542 14529 9158 13138 13236 13779 9429
Non-circular Bars 3933 4902 4071 4605 4214 4909 5589 3530 4368 4841 5100 2826
Forged Bars 1146 1300 1229 1568 1215 1352 1701 1288 1342 1573 1751 999
Profiles 577 575 648 860 707 642 743 595 617 703 471 405
Seamless Tubes 2958 2486 2897 2818 2481 2467 2447 1887 1816 2317 2515 1750
Welded Tubes (round) 9475 8712 9545 9897 8354 8024 11921 6184 10203 9966 9750 6852 Welded Tubes (square) 4368 3609 4228 4790 3659 3781 4906 2590 3929 4580 3904 3609 All Products 106746 122475 132529 124159 123445 129885 142442 98539 125679 131577 122381 88150
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 383829 470602 23
therefrom CRR (Finland-Sweden) 155326 223353 44
HR Sheet amp Plate real 228503 247249 8
CR Sheet 741922 781349 5
Round Bars 173509 156839 -10
Non-circular Bars 45302 52888 17
Forged Bars 15907 16464 4
Profiles 8157 7543 -8
Seamless Tubes 32031 28839 -10
Welded Tubes (round) 117290 108883 -7Welded Tubes (square) 48405 47953 -1All Products 1411026 1448007 3
Products[tonnes]
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Germany
Italy Finland and France present the top three suppliers to Germany
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl CRR
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 82523 78726 63905 58489 283643 66214 69144 64189 65065 264612 -7FINLAND 60561 42225 54797 51963 209546 58478 70158 67549 68258 264443 26BELGIUM 52868 47856 47071 40931 188726 50735 45587 39306 40283 175911 -7FRANCE 45577 50151 39720 45869 181317 56047 60299 54518 54593 225457 24SPAIN 49599 45001 37391 35656 167647 47555 38753 35430 33737 155475 -7NETHERLANDS 13496 13518 11367 10053 48434 13066 12319 14643 8451 48479 0TAIWAN 10724 12532 9587 8255 41098 1496 843 1530 1666 5535 -87INDIA 10126 12239 10567 7826 40758 9625 10473 13404 9300 42802 5SLOVENIA 11310 8237 13078 6539 39164 6483 11081 9258 7848 34670 -11SWEDEN 8976 7968 8396 11465 36805 13353 15280 17450 14456 60538 64CZECH REPUBLIC 8180 6906 5827 5868 26781 3270 8992 8146 6085 26493 -1AUSTRIA 6880 6844 6261 5921 25906 5912 5971 5146 5548 22577 -13U S A 3959 4145 4456 4972 17532 4113 3852 3779 1972 13716 -22CHINA 3870 3845 3420 4825 15960 4098 1616 1525 1307 8546 -46SOUTH AFRICA 2693 9833 2051 930 15507 3775 4035 7564 4321 19695 27SWITZERLAND 3548 3215 3218 3054 13035 3180 3447 2968 2833 12428 -5UKRAINE 2738 3244 3964 2926 12872 3612 3550 2906 2705 12773 -1POLAND 2915 2991 3176 2459 11541 2678 2646 3646 2954 11924 3UNITED KINGDOM 2942 2428 2175 2218 9763 2044 2250 1729 1044 7067 -28LUXEMBOURG 1735 1996 1390 1384 6505 1449 1794 1765 2000 7008 8SOUTH KOREA 1049 1510 1560 1223 5342 2013 1582 2766 1871 8232 54JAPAN 646 666 1030 880 3222 779 715 913 969 3376 5PORTUGAL 659 640 597 706 2602 597 984 801 640 3022 16DENMARK 678 379 410 460 1927 425 308 249 235 1217 -37THAILAND 574 456 65 176 1271 186 44 378 426 1034 -19ROMANIA 440 424 238 108 1210 59 80 72 77 288 -76OTHERS 1036 751 594 531 2912 508 1686 5031 3464 10689 267TOTAL 390302 368726 336311 315687 1411026 361750 377489 366661 342108 1448007 3
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
50
60
70
80
90
100
110
120
130
140
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Germany - Stainless Steel Market Volume Index
The market in Germany ends the year on a weak note (as usual) but higher than 12 months ago
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
Trend Lines
2011 2012 2013 2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
The Netherlands
bull The Dutch economy is struggling to find the way back up which is also reflected in the stainless steel sector which is experiencing fluctuations in demand and pricing
bull Order volumes are generally on a good level but material is needed mostly on short notice This situation is likely to face a problem in the next months as stock levels at Dutch distributors are on low levels already and delivery times of mill material are getting longer
bull Demand for Q216 is expected to be on a higher level than last year but still not enough to promise a more stable market situation for the remainder of the year The Dutch market is strongly exposed to Energy and downstream Chemical Process Industries which are not expected to recover in the near term
Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into the Netherlands
Declines throughout virtually all product forms lead to a total minus of 10
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 1358 2176 2297 1442 1966 1737 2763 1811 5493 4178 1969 1751 CR Sheet 10406 10406 11179 10400 16291 17950 17569 16331 14482 15849 12281 14720 Round Bars 1436 1607 1055 1141 1584 1874 1867 1642 2279 2094 2120 1100 Non-circular Bars 407 503 209 276 344 252 495 241 608 405 380 255 Forged Bars 136 156 197 86 91 183 144 120 356 126 292 116 Profiles 179 75 76 178 191 193 213 151 159 215 212 125 Seamless Tubes 806 510 766 737 430 1031 490 574 971 777 768 635 Welded Tubes (round) 1499 1383 1203 2150 1396 1642 1950 1756 1546 1702 2148 1008 Welded Tubes (square) 744 1081 795 1019 1043 887 1525 576 867 1095 1065 360 All Products 16971 17897 17777 17429 23336 25749 27016 23202 26761 26441 21235 20070
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 29514 28941 -2
CR Sheet 176327 167864 -5
Round Bars 27407 19799 -28
Non-circular Bars 5674 4375 -23
Forged Bars 2741 2003 -27
Profiles 2758 1967 -29
Seamless Tubes 8676 8495 -2
Welded Tubes (round) 27214 19383 -29Welded Tubes (square) 13507 11057 -18All Products 293818 263884 -10
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
300
350
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
| LP | |||
| Finland | -7 | ||
| Slovenia | 13 | ||
| Norway | -28 | ||
| Sweden | -1 | ||
| Denmark | 2 | ||
| Netherlands | -22 | ||
| Germany | -4 |
| Finland | |
| Slovenia | |
| Norway | |
| Sweden | |
| Denmark | |
| Netherlands | |
| Germany |
Sheet1
Damstahl Stainless Steel Report No 102 - April 2016 14 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 14 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Germany
bull The German stainless steel market is missing dynamics as plenty of material is still in the warehouses and the demand remains on a steady level After a weak start into 2016 also the building and construction industry within Germany has picked up again in March mainly due to a more lively demand than in early 2015 as the demand keeps on rising
bull GEA announced in early April 2016 to have successfully concluded the acquisition of Imaforni an Italian equipment supplier to the biscuits industry headquartered in Verona Imaforni is complementary to GEArsquos takeover of Comas a manufacturer of industrial processing equipment in the cake and pastry industry in mid 2015 and will further enhance GEArsquos capabilities in the food industry In 2015 Imaforni generated a revenue of 35 mill EUR
bull Kroneslsquo revenue rose in 2015 by 75 to 317 bn EUR (2014 295 bn EUR) New order intake in 2015 was 319 bn EUR up from 304 bn EUR in 2014 (+49 yoy) The companyrsquos EBT rose 164 from 1918 mill EUR in 2014 to 2233 mill EUR in 2015 Kronesrsquo EAT totalled 1563 mill EUR corresponding to an increase of around 152 set against the 2014 EAT of 1357 mill EUR For 2016 Krones expects to see revenues growing by around 3
Damstahl Stainless Steel Report No 102 - April 2016 15 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 15 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports of Stainless Steel Products into Germany
Increases at most high-volume products outweigh declines at round bars profiles and tube products CRR = Coils for re-rolling are not counted in total
Imports by Product
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 23905 35998 50557 30482 40680 44344 37076 45664 38756 49700 38878 34562
therefrom CRR (Finland-Sweden) 8817 15244 24952 11418 18050 22049 14817 25345 19867 25054 20001 17739
HR Sheet amp Plate real 15088 20754 25605 19064 22630 22295 22259 20319 18889 24646 18877 16823
CR Sheet 55543 65066 70540 66332 66877 72873 78347 52988 71377 69715 66234 45457
Round Bars 13658 15071 13766 14225 13308 13542 14529 9158 13138 13236 13779 9429
Non-circular Bars 3933 4902 4071 4605 4214 4909 5589 3530 4368 4841 5100 2826
Forged Bars 1146 1300 1229 1568 1215 1352 1701 1288 1342 1573 1751 999
Profiles 577 575 648 860 707 642 743 595 617 703 471 405
Seamless Tubes 2958 2486 2897 2818 2481 2467 2447 1887 1816 2317 2515 1750
Welded Tubes (round) 9475 8712 9545 9897 8354 8024 11921 6184 10203 9966 9750 6852 Welded Tubes (square) 4368 3609 4228 4790 3659 3781 4906 2590 3929 4580 3904 3609 All Products 106746 122475 132529 124159 123445 129885 142442 98539 125679 131577 122381 88150
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 383829 470602 23
therefrom CRR (Finland-Sweden) 155326 223353 44
HR Sheet amp Plate real 228503 247249 8
CR Sheet 741922 781349 5
Round Bars 173509 156839 -10
Non-circular Bars 45302 52888 17
Forged Bars 15907 16464 4
Profiles 8157 7543 -8
Seamless Tubes 32031 28839 -10
Welded Tubes (round) 117290 108883 -7Welded Tubes (square) 48405 47953 -1All Products 1411026 1448007 3
Products[tonnes]
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Germany
Italy Finland and France present the top three suppliers to Germany
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl CRR
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 82523 78726 63905 58489 283643 66214 69144 64189 65065 264612 -7FINLAND 60561 42225 54797 51963 209546 58478 70158 67549 68258 264443 26BELGIUM 52868 47856 47071 40931 188726 50735 45587 39306 40283 175911 -7FRANCE 45577 50151 39720 45869 181317 56047 60299 54518 54593 225457 24SPAIN 49599 45001 37391 35656 167647 47555 38753 35430 33737 155475 -7NETHERLANDS 13496 13518 11367 10053 48434 13066 12319 14643 8451 48479 0TAIWAN 10724 12532 9587 8255 41098 1496 843 1530 1666 5535 -87INDIA 10126 12239 10567 7826 40758 9625 10473 13404 9300 42802 5SLOVENIA 11310 8237 13078 6539 39164 6483 11081 9258 7848 34670 -11SWEDEN 8976 7968 8396 11465 36805 13353 15280 17450 14456 60538 64CZECH REPUBLIC 8180 6906 5827 5868 26781 3270 8992 8146 6085 26493 -1AUSTRIA 6880 6844 6261 5921 25906 5912 5971 5146 5548 22577 -13U S A 3959 4145 4456 4972 17532 4113 3852 3779 1972 13716 -22CHINA 3870 3845 3420 4825 15960 4098 1616 1525 1307 8546 -46SOUTH AFRICA 2693 9833 2051 930 15507 3775 4035 7564 4321 19695 27SWITZERLAND 3548 3215 3218 3054 13035 3180 3447 2968 2833 12428 -5UKRAINE 2738 3244 3964 2926 12872 3612 3550 2906 2705 12773 -1POLAND 2915 2991 3176 2459 11541 2678 2646 3646 2954 11924 3UNITED KINGDOM 2942 2428 2175 2218 9763 2044 2250 1729 1044 7067 -28LUXEMBOURG 1735 1996 1390 1384 6505 1449 1794 1765 2000 7008 8SOUTH KOREA 1049 1510 1560 1223 5342 2013 1582 2766 1871 8232 54JAPAN 646 666 1030 880 3222 779 715 913 969 3376 5PORTUGAL 659 640 597 706 2602 597 984 801 640 3022 16DENMARK 678 379 410 460 1927 425 308 249 235 1217 -37THAILAND 574 456 65 176 1271 186 44 378 426 1034 -19ROMANIA 440 424 238 108 1210 59 80 72 77 288 -76OTHERS 1036 751 594 531 2912 508 1686 5031 3464 10689 267TOTAL 390302 368726 336311 315687 1411026 361750 377489 366661 342108 1448007 3
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
50
60
70
80
90
100
110
120
130
140
Oslash 2
011
Feb
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Jun
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Oct
Dec Feb
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Dec Feb
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Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Germany - Stainless Steel Market Volume Index
The market in Germany ends the year on a weak note (as usual) but higher than 12 months ago
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
Trend Lines
2011 2012 2013 2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
The Netherlands
bull The Dutch economy is struggling to find the way back up which is also reflected in the stainless steel sector which is experiencing fluctuations in demand and pricing
bull Order volumes are generally on a good level but material is needed mostly on short notice This situation is likely to face a problem in the next months as stock levels at Dutch distributors are on low levels already and delivery times of mill material are getting longer
bull Demand for Q216 is expected to be on a higher level than last year but still not enough to promise a more stable market situation for the remainder of the year The Dutch market is strongly exposed to Energy and downstream Chemical Process Industries which are not expected to recover in the near term
Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into the Netherlands
Declines throughout virtually all product forms lead to a total minus of 10
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 1358 2176 2297 1442 1966 1737 2763 1811 5493 4178 1969 1751 CR Sheet 10406 10406 11179 10400 16291 17950 17569 16331 14482 15849 12281 14720 Round Bars 1436 1607 1055 1141 1584 1874 1867 1642 2279 2094 2120 1100 Non-circular Bars 407 503 209 276 344 252 495 241 608 405 380 255 Forged Bars 136 156 197 86 91 183 144 120 356 126 292 116 Profiles 179 75 76 178 191 193 213 151 159 215 212 125 Seamless Tubes 806 510 766 737 430 1031 490 574 971 777 768 635 Welded Tubes (round) 1499 1383 1203 2150 1396 1642 1950 1756 1546 1702 2148 1008 Welded Tubes (square) 744 1081 795 1019 1043 887 1525 576 867 1095 1065 360 All Products 16971 17897 17777 17429 23336 25749 27016 23202 26761 26441 21235 20070
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 29514 28941 -2
CR Sheet 176327 167864 -5
Round Bars 27407 19799 -28
Non-circular Bars 5674 4375 -23
Forged Bars 2741 2003 -27
Profiles 2758 1967 -29
Seamless Tubes 8676 8495 -2
Welded Tubes (round) 27214 19383 -29Welded Tubes (square) 13507 11057 -18All Products 293818 263884 -10
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
300
350
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
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Apr
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Oct
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Apr
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Aug
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Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
| LP | |||
| Finland | -7 | ||
| Slovenia | 13 | ||
| Norway | -28 | ||
| Sweden | -1 | ||
| Denmark | 2 | ||
| Netherlands | -22 | ||
| Germany | -4 |
Damstahl Stainless Steel Report No 102 - April 2016 14 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 14 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Germany
bull The German stainless steel market is missing dynamics as plenty of material is still in the warehouses and the demand remains on a steady level After a weak start into 2016 also the building and construction industry within Germany has picked up again in March mainly due to a more lively demand than in early 2015 as the demand keeps on rising
bull GEA announced in early April 2016 to have successfully concluded the acquisition of Imaforni an Italian equipment supplier to the biscuits industry headquartered in Verona Imaforni is complementary to GEArsquos takeover of Comas a manufacturer of industrial processing equipment in the cake and pastry industry in mid 2015 and will further enhance GEArsquos capabilities in the food industry In 2015 Imaforni generated a revenue of 35 mill EUR
bull Kroneslsquo revenue rose in 2015 by 75 to 317 bn EUR (2014 295 bn EUR) New order intake in 2015 was 319 bn EUR up from 304 bn EUR in 2014 (+49 yoy) The companyrsquos EBT rose 164 from 1918 mill EUR in 2014 to 2233 mill EUR in 2015 Kronesrsquo EAT totalled 1563 mill EUR corresponding to an increase of around 152 set against the 2014 EAT of 1357 mill EUR For 2016 Krones expects to see revenues growing by around 3
Damstahl Stainless Steel Report No 102 - April 2016 15 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 15 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports of Stainless Steel Products into Germany
Increases at most high-volume products outweigh declines at round bars profiles and tube products CRR = Coils for re-rolling are not counted in total
Imports by Product
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 23905 35998 50557 30482 40680 44344 37076 45664 38756 49700 38878 34562
therefrom CRR (Finland-Sweden) 8817 15244 24952 11418 18050 22049 14817 25345 19867 25054 20001 17739
HR Sheet amp Plate real 15088 20754 25605 19064 22630 22295 22259 20319 18889 24646 18877 16823
CR Sheet 55543 65066 70540 66332 66877 72873 78347 52988 71377 69715 66234 45457
Round Bars 13658 15071 13766 14225 13308 13542 14529 9158 13138 13236 13779 9429
Non-circular Bars 3933 4902 4071 4605 4214 4909 5589 3530 4368 4841 5100 2826
Forged Bars 1146 1300 1229 1568 1215 1352 1701 1288 1342 1573 1751 999
Profiles 577 575 648 860 707 642 743 595 617 703 471 405
Seamless Tubes 2958 2486 2897 2818 2481 2467 2447 1887 1816 2317 2515 1750
Welded Tubes (round) 9475 8712 9545 9897 8354 8024 11921 6184 10203 9966 9750 6852 Welded Tubes (square) 4368 3609 4228 4790 3659 3781 4906 2590 3929 4580 3904 3609 All Products 106746 122475 132529 124159 123445 129885 142442 98539 125679 131577 122381 88150
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 383829 470602 23
therefrom CRR (Finland-Sweden) 155326 223353 44
HR Sheet amp Plate real 228503 247249 8
CR Sheet 741922 781349 5
Round Bars 173509 156839 -10
Non-circular Bars 45302 52888 17
Forged Bars 15907 16464 4
Profiles 8157 7543 -8
Seamless Tubes 32031 28839 -10
Welded Tubes (round) 117290 108883 -7Welded Tubes (square) 48405 47953 -1All Products 1411026 1448007 3
Products[tonnes]
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Germany
Italy Finland and France present the top three suppliers to Germany
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl CRR
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 82523 78726 63905 58489 283643 66214 69144 64189 65065 264612 -7FINLAND 60561 42225 54797 51963 209546 58478 70158 67549 68258 264443 26BELGIUM 52868 47856 47071 40931 188726 50735 45587 39306 40283 175911 -7FRANCE 45577 50151 39720 45869 181317 56047 60299 54518 54593 225457 24SPAIN 49599 45001 37391 35656 167647 47555 38753 35430 33737 155475 -7NETHERLANDS 13496 13518 11367 10053 48434 13066 12319 14643 8451 48479 0TAIWAN 10724 12532 9587 8255 41098 1496 843 1530 1666 5535 -87INDIA 10126 12239 10567 7826 40758 9625 10473 13404 9300 42802 5SLOVENIA 11310 8237 13078 6539 39164 6483 11081 9258 7848 34670 -11SWEDEN 8976 7968 8396 11465 36805 13353 15280 17450 14456 60538 64CZECH REPUBLIC 8180 6906 5827 5868 26781 3270 8992 8146 6085 26493 -1AUSTRIA 6880 6844 6261 5921 25906 5912 5971 5146 5548 22577 -13U S A 3959 4145 4456 4972 17532 4113 3852 3779 1972 13716 -22CHINA 3870 3845 3420 4825 15960 4098 1616 1525 1307 8546 -46SOUTH AFRICA 2693 9833 2051 930 15507 3775 4035 7564 4321 19695 27SWITZERLAND 3548 3215 3218 3054 13035 3180 3447 2968 2833 12428 -5UKRAINE 2738 3244 3964 2926 12872 3612 3550 2906 2705 12773 -1POLAND 2915 2991 3176 2459 11541 2678 2646 3646 2954 11924 3UNITED KINGDOM 2942 2428 2175 2218 9763 2044 2250 1729 1044 7067 -28LUXEMBOURG 1735 1996 1390 1384 6505 1449 1794 1765 2000 7008 8SOUTH KOREA 1049 1510 1560 1223 5342 2013 1582 2766 1871 8232 54JAPAN 646 666 1030 880 3222 779 715 913 969 3376 5PORTUGAL 659 640 597 706 2602 597 984 801 640 3022 16DENMARK 678 379 410 460 1927 425 308 249 235 1217 -37THAILAND 574 456 65 176 1271 186 44 378 426 1034 -19ROMANIA 440 424 238 108 1210 59 80 72 77 288 -76OTHERS 1036 751 594 531 2912 508 1686 5031 3464 10689 267TOTAL 390302 368726 336311 315687 1411026 361750 377489 366661 342108 1448007 3
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
50
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90
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140
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[Oslash 2
011
= 10
0]
Flat Products
Long Products
Germany - Stainless Steel Market Volume Index
The market in Germany ends the year on a weak note (as usual) but higher than 12 months ago
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
Trend Lines
2011 2012 2013 2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
The Netherlands
bull The Dutch economy is struggling to find the way back up which is also reflected in the stainless steel sector which is experiencing fluctuations in demand and pricing
bull Order volumes are generally on a good level but material is needed mostly on short notice This situation is likely to face a problem in the next months as stock levels at Dutch distributors are on low levels already and delivery times of mill material are getting longer
bull Demand for Q216 is expected to be on a higher level than last year but still not enough to promise a more stable market situation for the remainder of the year The Dutch market is strongly exposed to Energy and downstream Chemical Process Industries which are not expected to recover in the near term
Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into the Netherlands
Declines throughout virtually all product forms lead to a total minus of 10
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 1358 2176 2297 1442 1966 1737 2763 1811 5493 4178 1969 1751 CR Sheet 10406 10406 11179 10400 16291 17950 17569 16331 14482 15849 12281 14720 Round Bars 1436 1607 1055 1141 1584 1874 1867 1642 2279 2094 2120 1100 Non-circular Bars 407 503 209 276 344 252 495 241 608 405 380 255 Forged Bars 136 156 197 86 91 183 144 120 356 126 292 116 Profiles 179 75 76 178 191 193 213 151 159 215 212 125 Seamless Tubes 806 510 766 737 430 1031 490 574 971 777 768 635 Welded Tubes (round) 1499 1383 1203 2150 1396 1642 1950 1756 1546 1702 2148 1008 Welded Tubes (square) 744 1081 795 1019 1043 887 1525 576 867 1095 1065 360 All Products 16971 17897 17777 17429 23336 25749 27016 23202 26761 26441 21235 20070
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 29514 28941 -2
CR Sheet 176327 167864 -5
Round Bars 27407 19799 -28
Non-circular Bars 5674 4375 -23
Forged Bars 2741 2003 -27
Profiles 2758 1967 -29
Seamless Tubes 8676 8495 -2
Welded Tubes (round) 27214 19383 -29Welded Tubes (square) 13507 11057 -18All Products 293818 263884 -10
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
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350
Oslash 2
011
Feb
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[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
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160
180
Oslash 2
011
Feb
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Apr
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[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 15 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 15 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports of Stainless Steel Products into Germany
Increases at most high-volume products outweigh declines at round bars profiles and tube products CRR = Coils for re-rolling are not counted in total
Imports by Product
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 23905 35998 50557 30482 40680 44344 37076 45664 38756 49700 38878 34562
therefrom CRR (Finland-Sweden) 8817 15244 24952 11418 18050 22049 14817 25345 19867 25054 20001 17739
HR Sheet amp Plate real 15088 20754 25605 19064 22630 22295 22259 20319 18889 24646 18877 16823
CR Sheet 55543 65066 70540 66332 66877 72873 78347 52988 71377 69715 66234 45457
Round Bars 13658 15071 13766 14225 13308 13542 14529 9158 13138 13236 13779 9429
Non-circular Bars 3933 4902 4071 4605 4214 4909 5589 3530 4368 4841 5100 2826
Forged Bars 1146 1300 1229 1568 1215 1352 1701 1288 1342 1573 1751 999
Profiles 577 575 648 860 707 642 743 595 617 703 471 405
Seamless Tubes 2958 2486 2897 2818 2481 2467 2447 1887 1816 2317 2515 1750
Welded Tubes (round) 9475 8712 9545 9897 8354 8024 11921 6184 10203 9966 9750 6852 Welded Tubes (square) 4368 3609 4228 4790 3659 3781 4906 2590 3929 4580 3904 3609 All Products 106746 122475 132529 124159 123445 129885 142442 98539 125679 131577 122381 88150
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 383829 470602 23
therefrom CRR (Finland-Sweden) 155326 223353 44
HR Sheet amp Plate real 228503 247249 8
CR Sheet 741922 781349 5
Round Bars 173509 156839 -10
Non-circular Bars 45302 52888 17
Forged Bars 15907 16464 4
Profiles 8157 7543 -8
Seamless Tubes 32031 28839 -10
Welded Tubes (round) 117290 108883 -7Welded Tubes (square) 48405 47953 -1All Products 1411026 1448007 3
Products[tonnes]
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Germany
Italy Finland and France present the top three suppliers to Germany
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl CRR
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 82523 78726 63905 58489 283643 66214 69144 64189 65065 264612 -7FINLAND 60561 42225 54797 51963 209546 58478 70158 67549 68258 264443 26BELGIUM 52868 47856 47071 40931 188726 50735 45587 39306 40283 175911 -7FRANCE 45577 50151 39720 45869 181317 56047 60299 54518 54593 225457 24SPAIN 49599 45001 37391 35656 167647 47555 38753 35430 33737 155475 -7NETHERLANDS 13496 13518 11367 10053 48434 13066 12319 14643 8451 48479 0TAIWAN 10724 12532 9587 8255 41098 1496 843 1530 1666 5535 -87INDIA 10126 12239 10567 7826 40758 9625 10473 13404 9300 42802 5SLOVENIA 11310 8237 13078 6539 39164 6483 11081 9258 7848 34670 -11SWEDEN 8976 7968 8396 11465 36805 13353 15280 17450 14456 60538 64CZECH REPUBLIC 8180 6906 5827 5868 26781 3270 8992 8146 6085 26493 -1AUSTRIA 6880 6844 6261 5921 25906 5912 5971 5146 5548 22577 -13U S A 3959 4145 4456 4972 17532 4113 3852 3779 1972 13716 -22CHINA 3870 3845 3420 4825 15960 4098 1616 1525 1307 8546 -46SOUTH AFRICA 2693 9833 2051 930 15507 3775 4035 7564 4321 19695 27SWITZERLAND 3548 3215 3218 3054 13035 3180 3447 2968 2833 12428 -5UKRAINE 2738 3244 3964 2926 12872 3612 3550 2906 2705 12773 -1POLAND 2915 2991 3176 2459 11541 2678 2646 3646 2954 11924 3UNITED KINGDOM 2942 2428 2175 2218 9763 2044 2250 1729 1044 7067 -28LUXEMBOURG 1735 1996 1390 1384 6505 1449 1794 1765 2000 7008 8SOUTH KOREA 1049 1510 1560 1223 5342 2013 1582 2766 1871 8232 54JAPAN 646 666 1030 880 3222 779 715 913 969 3376 5PORTUGAL 659 640 597 706 2602 597 984 801 640 3022 16DENMARK 678 379 410 460 1927 425 308 249 235 1217 -37THAILAND 574 456 65 176 1271 186 44 378 426 1034 -19ROMANIA 440 424 238 108 1210 59 80 72 77 288 -76OTHERS 1036 751 594 531 2912 508 1686 5031 3464 10689 267TOTAL 390302 368726 336311 315687 1411026 361750 377489 366661 342108 1448007 3
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
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[Oslash 2
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0]
Flat Products
Long Products
Germany - Stainless Steel Market Volume Index
The market in Germany ends the year on a weak note (as usual) but higher than 12 months ago
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
Trend Lines
2011 2012 2013 2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
The Netherlands
bull The Dutch economy is struggling to find the way back up which is also reflected in the stainless steel sector which is experiencing fluctuations in demand and pricing
bull Order volumes are generally on a good level but material is needed mostly on short notice This situation is likely to face a problem in the next months as stock levels at Dutch distributors are on low levels already and delivery times of mill material are getting longer
bull Demand for Q216 is expected to be on a higher level than last year but still not enough to promise a more stable market situation for the remainder of the year The Dutch market is strongly exposed to Energy and downstream Chemical Process Industries which are not expected to recover in the near term
Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into the Netherlands
Declines throughout virtually all product forms lead to a total minus of 10
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 1358 2176 2297 1442 1966 1737 2763 1811 5493 4178 1969 1751 CR Sheet 10406 10406 11179 10400 16291 17950 17569 16331 14482 15849 12281 14720 Round Bars 1436 1607 1055 1141 1584 1874 1867 1642 2279 2094 2120 1100 Non-circular Bars 407 503 209 276 344 252 495 241 608 405 380 255 Forged Bars 136 156 197 86 91 183 144 120 356 126 292 116 Profiles 179 75 76 178 191 193 213 151 159 215 212 125 Seamless Tubes 806 510 766 737 430 1031 490 574 971 777 768 635 Welded Tubes (round) 1499 1383 1203 2150 1396 1642 1950 1756 1546 1702 2148 1008 Welded Tubes (square) 744 1081 795 1019 1043 887 1525 576 867 1095 1065 360 All Products 16971 17897 17777 17429 23336 25749 27016 23202 26761 26441 21235 20070
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 29514 28941 -2
CR Sheet 176327 167864 -5
Round Bars 27407 19799 -28
Non-circular Bars 5674 4375 -23
Forged Bars 2741 2003 -27
Profiles 2758 1967 -29
Seamless Tubes 8676 8495 -2
Welded Tubes (round) 27214 19383 -29Welded Tubes (square) 13507 11057 -18All Products 293818 263884 -10
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
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[Oslash 2
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= 10
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Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
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[Oslash 2
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Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
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200
Oslash 2
011
Feb
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Apr
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[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 16 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Germany
Italy Finland and France present the top three suppliers to Germany
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl CRR
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 82523 78726 63905 58489 283643 66214 69144 64189 65065 264612 -7FINLAND 60561 42225 54797 51963 209546 58478 70158 67549 68258 264443 26BELGIUM 52868 47856 47071 40931 188726 50735 45587 39306 40283 175911 -7FRANCE 45577 50151 39720 45869 181317 56047 60299 54518 54593 225457 24SPAIN 49599 45001 37391 35656 167647 47555 38753 35430 33737 155475 -7NETHERLANDS 13496 13518 11367 10053 48434 13066 12319 14643 8451 48479 0TAIWAN 10724 12532 9587 8255 41098 1496 843 1530 1666 5535 -87INDIA 10126 12239 10567 7826 40758 9625 10473 13404 9300 42802 5SLOVENIA 11310 8237 13078 6539 39164 6483 11081 9258 7848 34670 -11SWEDEN 8976 7968 8396 11465 36805 13353 15280 17450 14456 60538 64CZECH REPUBLIC 8180 6906 5827 5868 26781 3270 8992 8146 6085 26493 -1AUSTRIA 6880 6844 6261 5921 25906 5912 5971 5146 5548 22577 -13U S A 3959 4145 4456 4972 17532 4113 3852 3779 1972 13716 -22CHINA 3870 3845 3420 4825 15960 4098 1616 1525 1307 8546 -46SOUTH AFRICA 2693 9833 2051 930 15507 3775 4035 7564 4321 19695 27SWITZERLAND 3548 3215 3218 3054 13035 3180 3447 2968 2833 12428 -5UKRAINE 2738 3244 3964 2926 12872 3612 3550 2906 2705 12773 -1POLAND 2915 2991 3176 2459 11541 2678 2646 3646 2954 11924 3UNITED KINGDOM 2942 2428 2175 2218 9763 2044 2250 1729 1044 7067 -28LUXEMBOURG 1735 1996 1390 1384 6505 1449 1794 1765 2000 7008 8SOUTH KOREA 1049 1510 1560 1223 5342 2013 1582 2766 1871 8232 54JAPAN 646 666 1030 880 3222 779 715 913 969 3376 5PORTUGAL 659 640 597 706 2602 597 984 801 640 3022 16DENMARK 678 379 410 460 1927 425 308 249 235 1217 -37THAILAND 574 456 65 176 1271 186 44 378 426 1034 -19ROMANIA 440 424 238 108 1210 59 80 72 77 288 -76OTHERS 1036 751 594 531 2912 508 1686 5031 3464 10689 267TOTAL 390302 368726 336311 315687 1411026 361750 377489 366661 342108 1448007 3
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
50
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80
90
100
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120
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140
Oslash 2
011
Feb
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Dec Feb
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Dec Feb
Apr
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Apr
Jun
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[Oslash 2
011
= 10
0]
Flat Products
Long Products
Germany - Stainless Steel Market Volume Index
The market in Germany ends the year on a weak note (as usual) but higher than 12 months ago
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
Trend Lines
2011 2012 2013 2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
The Netherlands
bull The Dutch economy is struggling to find the way back up which is also reflected in the stainless steel sector which is experiencing fluctuations in demand and pricing
bull Order volumes are generally on a good level but material is needed mostly on short notice This situation is likely to face a problem in the next months as stock levels at Dutch distributors are on low levels already and delivery times of mill material are getting longer
bull Demand for Q216 is expected to be on a higher level than last year but still not enough to promise a more stable market situation for the remainder of the year The Dutch market is strongly exposed to Energy and downstream Chemical Process Industries which are not expected to recover in the near term
Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into the Netherlands
Declines throughout virtually all product forms lead to a total minus of 10
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 1358 2176 2297 1442 1966 1737 2763 1811 5493 4178 1969 1751 CR Sheet 10406 10406 11179 10400 16291 17950 17569 16331 14482 15849 12281 14720 Round Bars 1436 1607 1055 1141 1584 1874 1867 1642 2279 2094 2120 1100 Non-circular Bars 407 503 209 276 344 252 495 241 608 405 380 255 Forged Bars 136 156 197 86 91 183 144 120 356 126 292 116 Profiles 179 75 76 178 191 193 213 151 159 215 212 125 Seamless Tubes 806 510 766 737 430 1031 490 574 971 777 768 635 Welded Tubes (round) 1499 1383 1203 2150 1396 1642 1950 1756 1546 1702 2148 1008 Welded Tubes (square) 744 1081 795 1019 1043 887 1525 576 867 1095 1065 360 All Products 16971 17897 17777 17429 23336 25749 27016 23202 26761 26441 21235 20070
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 29514 28941 -2
CR Sheet 176327 167864 -5
Round Bars 27407 19799 -28
Non-circular Bars 5674 4375 -23
Forged Bars 2741 2003 -27
Profiles 2758 1967 -29
Seamless Tubes 8676 8495 -2
Welded Tubes (round) 27214 19383 -29Welded Tubes (square) 13507 11057 -18All Products 293818 263884 -10
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
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200
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350
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Apr
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Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
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[Oslash 2
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= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
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Dec Feb
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Dec Feb
Apr
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Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 17 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
50
60
70
80
90
100
110
120
130
140
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Germany - Stainless Steel Market Volume Index
The market in Germany ends the year on a weak note (as usual) but higher than 12 months ago
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
Trend Lines
2011 2012 2013 2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
The Netherlands
bull The Dutch economy is struggling to find the way back up which is also reflected in the stainless steel sector which is experiencing fluctuations in demand and pricing
bull Order volumes are generally on a good level but material is needed mostly on short notice This situation is likely to face a problem in the next months as stock levels at Dutch distributors are on low levels already and delivery times of mill material are getting longer
bull Demand for Q216 is expected to be on a higher level than last year but still not enough to promise a more stable market situation for the remainder of the year The Dutch market is strongly exposed to Energy and downstream Chemical Process Industries which are not expected to recover in the near term
Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into the Netherlands
Declines throughout virtually all product forms lead to a total minus of 10
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 1358 2176 2297 1442 1966 1737 2763 1811 5493 4178 1969 1751 CR Sheet 10406 10406 11179 10400 16291 17950 17569 16331 14482 15849 12281 14720 Round Bars 1436 1607 1055 1141 1584 1874 1867 1642 2279 2094 2120 1100 Non-circular Bars 407 503 209 276 344 252 495 241 608 405 380 255 Forged Bars 136 156 197 86 91 183 144 120 356 126 292 116 Profiles 179 75 76 178 191 193 213 151 159 215 212 125 Seamless Tubes 806 510 766 737 430 1031 490 574 971 777 768 635 Welded Tubes (round) 1499 1383 1203 2150 1396 1642 1950 1756 1546 1702 2148 1008 Welded Tubes (square) 744 1081 795 1019 1043 887 1525 576 867 1095 1065 360 All Products 16971 17897 17777 17429 23336 25749 27016 23202 26761 26441 21235 20070
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 29514 28941 -2
CR Sheet 176327 167864 -5
Round Bars 27407 19799 -28
Non-circular Bars 5674 4375 -23
Forged Bars 2741 2003 -27
Profiles 2758 1967 -29
Seamless Tubes 8676 8495 -2
Welded Tubes (round) 27214 19383 -29Welded Tubes (square) 13507 11057 -18All Products 293818 263884 -10
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
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200
250
300
350
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011
Feb
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Apr
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Oct
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[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
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Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 18 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
The Netherlands
bull The Dutch economy is struggling to find the way back up which is also reflected in the stainless steel sector which is experiencing fluctuations in demand and pricing
bull Order volumes are generally on a good level but material is needed mostly on short notice This situation is likely to face a problem in the next months as stock levels at Dutch distributors are on low levels already and delivery times of mill material are getting longer
bull Demand for Q216 is expected to be on a higher level than last year but still not enough to promise a more stable market situation for the remainder of the year The Dutch market is strongly exposed to Energy and downstream Chemical Process Industries which are not expected to recover in the near term
Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into the Netherlands
Declines throughout virtually all product forms lead to a total minus of 10
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 1358 2176 2297 1442 1966 1737 2763 1811 5493 4178 1969 1751 CR Sheet 10406 10406 11179 10400 16291 17950 17569 16331 14482 15849 12281 14720 Round Bars 1436 1607 1055 1141 1584 1874 1867 1642 2279 2094 2120 1100 Non-circular Bars 407 503 209 276 344 252 495 241 608 405 380 255 Forged Bars 136 156 197 86 91 183 144 120 356 126 292 116 Profiles 179 75 76 178 191 193 213 151 159 215 212 125 Seamless Tubes 806 510 766 737 430 1031 490 574 971 777 768 635 Welded Tubes (round) 1499 1383 1203 2150 1396 1642 1950 1756 1546 1702 2148 1008 Welded Tubes (square) 744 1081 795 1019 1043 887 1525 576 867 1095 1065 360 All Products 16971 17897 17777 17429 23336 25749 27016 23202 26761 26441 21235 20070
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 29514 28941 -2
CR Sheet 176327 167864 -5
Round Bars 27407 19799 -28
Non-circular Bars 5674 4375 -23
Forged Bars 2741 2003 -27
Profiles 2758 1967 -29
Seamless Tubes 8676 8495 -2
Welded Tubes (round) 27214 19383 -29Welded Tubes (square) 13507 11057 -18All Products 293818 263884 -10
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
300
350
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
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Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
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Apr
Jun
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Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 19 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into the Netherlands
Declines throughout virtually all product forms lead to a total minus of 10
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 1358 2176 2297 1442 1966 1737 2763 1811 5493 4178 1969 1751 CR Sheet 10406 10406 11179 10400 16291 17950 17569 16331 14482 15849 12281 14720 Round Bars 1436 1607 1055 1141 1584 1874 1867 1642 2279 2094 2120 1100 Non-circular Bars 407 503 209 276 344 252 495 241 608 405 380 255 Forged Bars 136 156 197 86 91 183 144 120 356 126 292 116 Profiles 179 75 76 178 191 193 213 151 159 215 212 125 Seamless Tubes 806 510 766 737 430 1031 490 574 971 777 768 635 Welded Tubes (round) 1499 1383 1203 2150 1396 1642 1950 1756 1546 1702 2148 1008 Welded Tubes (square) 744 1081 795 1019 1043 887 1525 576 867 1095 1065 360 All Products 16971 17897 17777 17429 23336 25749 27016 23202 26761 26441 21235 20070
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 29514 28941 -2
CR Sheet 176327 167864 -5
Round Bars 27407 19799 -28
Non-circular Bars 5674 4375 -23
Forged Bars 2741 2003 -27
Profiles 2758 1967 -29
Seamless Tubes 8676 8495 -2
Welded Tubes (round) 27214 19383 -29Welded Tubes (square) 13507 11057 -18All Products 293818 263884 -10
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
300
350
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
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250
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Dec Feb
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[Oslash 2
011
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0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 20 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into the Netherlands
Korea significantly increased its deliveries to the Netherlands while Chinarsquos and Taiwanrsquos volumes keep on shrinking
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes Excl Finland = Imports to Terneuzen (from Finland) not included in Total
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 131097 145873 104462 113833 495265 138962 161204 126993 134272 561431 13
GERMANY 10886 14040 14243 10706 49875 8436 11516 11814 8666 40432 -19ITALY 14358 13226 10569 11009 49162 10515 9814 10295 11954 42578 -13BELGIUM 10170 11204 10493 6355 38222 5398 14067 12585 7519 39569 4CHINA 7600 8096 6706 2882 25284 1068 514 555 563 2700 -89SOUTH AFRICA 4183 8065 8181 3344 23773 2334 6692 7412 8356 24794 4SOUTH KOREA 5642 4395 7581 4392 22010 7986 8459 9549 8202 34196 55INDIA 6728 7554 3935 3417 21634 3153 2591 5128 4392 15264 -29TAIWAN 3465 5478 4771 4381 18095 1588 1394 2144 2360 7486 -59FRANCE 5083 4571 1937 3148 14739 2402 3063 4441 4716 14622 -1SWEDEN 2955 3269 2079 2768 11071 3054 1993 1829 2113 8989 -19U S A 2194 1046 610 443 4293 718 1632 5197 1749 9296 117SPAIN 2148 753 449 844 4194 580 948 595 721 2844 -32UNITED KINGDOM 579 659 505 499 2242 303 315 339 440 1397 -38SLOVENIA 401 695 381 309 1786 502 297 252 449 1500 -16JAPAN 355 296 333 212 1196 176 1713 2242 553 4684 292VIETNAM 19 90 18 1050 1177 2648 525 658 1471 5302 350LUXEMBOURG 350 252 328 159 1089 176 182 303 281 942 -13OTHERS 838 675 816 1647 3976 1608 799 1641 3241 7289 83TOTAL 77954 84364 73935 57565 293818 52645 66514 76979 67746 263884 -10
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
300
350
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
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Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 21 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
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300
350
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Oct
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[Oslash 2
011
= 10
0]
Flat Products
Long Products
Netherlands ndash Stainless Steel Market Volume Index
Q415 ended pretty weak but at least still better than Q414
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
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Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
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Aug
Oct
Dec Feb
Apr
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Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 22 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Denmark
bull Stocks in the Danish market are spot on and also the end user activity is rated as OK Order volumes and the prices are stabilising on the short term
bull The Grundfos Group saw sales growing by 08 in 2015 totalling 24800 mill DKK (2014 23618 mill DKK) According to Grundfos the sales growth was positively influenced by exchange rate increases in a number of key currencies The companyrsquos EBIT more than doubled from 861 mill DKK in 2014 to around 2014 mill DKK in 2015 Grundfosrsquo EAT for 2015 almost tripled to 1450 mill DKK up from 503 mill DKK in 2014
bull Arla Foods announced to have entered into a joint venture with Diary Farmers of America (DFA) that includes the construction of a small dairy plant in the United States for cheddar cheese production The joint investment is rated at 53 mill EUR (Arla Foods 20 DFA 80) and will enable Arla Foods to increase its market share in the United States which was to date limited by US import volume restrictions
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
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250
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011
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Apr
Jun
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[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 23 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Denmark
Product forms show a mixed picture adding up to a minus of 4
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 719 1153 1320 1398 771 1327 1290 1404 1217 2002 1484 666
CR Sheet 3367 3694 4237 4660 5320 4685 3874 3571 4490 5178 4417 3352
Round Bars 1429 1234 1405 1193 1353 1613 1542 808 1223 1271 1424 990
Non-circular Bars 101 102 158 111 113 121 129 91 207 151 141 75
Forged Bars 144 167 135 211 205 268 173 205 168 201 181 153
Profiles 74 104 102 84 91 177 165 113 130 127 139 72
Seamless Tubes 183 128 152 121 130 328 194 63 86 133 99 115
Welded Tubes (round) 1250 1250 1461 1097 1177 1275 1125 654 1261 1266 1267 902 Welded Tubes (square) 599 1023 1303 935 597 602 516 362 810 997 487 488 All Products 7866 8855 10273 9810 9757 10396 9008 7271 9592 11326 9639 6813
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 12033 14751 23CR Sheet 58073 50845 -12
Round Bars 14765 15485 5
Non-circular Bars 1693 1500 -11
Forged Bars 2060 2211 7
Profiles 1323 1378 4
Seamless Tubes 2133 1732 -19
Welded Tubes (round) 15990 13985 -13Welded Tubes (square) 7401 8719 18All Products 115471 110606 -4
Products[tonnes]
2015
Products[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 24 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Denmark
Belgium significantly increased its deliveries to Denmark and also Italy reinforced its place as main supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 6300 6183 5464 5428 23375 7643 7835 6121 6392 27991 20GERMANY 7114 6001 4320 4322 21757 5105 5398 4739 3491 18733 -14TAIWAN 4679 4589 5085 4240 18593 1313 1580 972 2857 6722 -64SWEDEN 3093 3275 3028 2215 11611 3329 3669 2541 3282 12821 10FINLAND 3475 2702 2351 1632 10160 2569 3182 2635 3663 12049 19FRANCE 2576 2485 1717 1534 8312 1683 2020 1608 1654 6965 -16SPAIN 1242 886 1853 1573 5554 784 844 799 991 3418 -38CHINA 1267 853 1709 705 4534 534 451 856 719 2560 -44INDIA 1085 815 767 588 3255 664 725 709 742 2840 -13NETHERLANDS 665 854 775 527 2821 602 538 431 405 1976 -30BELGIUM 19 231 625 851 1726 1159 1450 1365 1619 5593 224NORWAY 213 314 254 315 1096 301 233 171 66 771 -30UNITED KINGDOM 87 128 79 95 389 145 182 127 144 598 54SWITZERLAND 46 80 187 45 358 7 1 4 6 18 -95POLAND 76 142 61 63 342 87 241 211 215 754 120PORTUGAL 44 26 78 64 212 18 38 33 53 142 -33ESTONIA 44 30 55 37 166 36 28 39 45 148 -11SOUTH AFRICA 42 64 20 29 155 154 562 948 401 2065 1232SLOVAKIA 2 2 59 91 154 107 53 163 52 375 144TURKEY 2 11 63 46 122 21 82 74 127 304 149AUSTRIA 22 33 44 18 117 24 19 16 19 78 -33U S A 3 103 5 4 115 235 187 243 204 869 656PAKISTAN - 53 49 - 102 - - - - - -100LATVIA 43 32 16 10 101 5 14 15 18 52 -49OTHERS 63 105 66 110 344 469 631 1051 613 2764 703
TOTAL 32202 29997 28730 24542 115471 26994 29963 25871 27778 110606 -4
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 25 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Denmark ndash Stainless Steel Market Volume Index
Flat products experience a more stable development than the highly volatile long product market
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
180
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
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Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
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Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 26 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Sweden
bull Coming into Q216 the Swedish stainless market is showing continuous signs of improvement Activity from end users is stated as OK and volumes in the market are pretty good But all positive developments will only help to improve the overall market conditions if the (base) prices will increase too The Swedish market is highly exposed to food processing and consumer goods which look pretty good at the moment
bull BE Group announced to close its loss-making businesses in the Czech Republic and Slovakia In 2015 the two countries contributed 382 mill SEK in revenues but generated operating losses of 32 mill SEK and 20 mill SEK While the Slovakia business will be fully closed down in the Czech market the BE Group will stop to sell carbon steel and aluminium
bull Tetra Pak acquired Laude a Netherlands-based manufacturer of plastic moulds used in hard and semi-hard cheese production with a headcount of 38 Laude will be assigned to Tetra Pakrsquos Cheeses and Powder systems branch but will continue working under its current leadership with its existing management team
bull Alfa Lavallsquos 2015 order intake amounted to 37098 mill SEK up from 36660 mill SEK in 2014 (+12 yoy) Net sales rose from 35067 mill SEK in 2014 to 39746 mill SEK in 2015 corresponding to an increase of 133 yoy Alfa Lavallsquos profit in 2015 grew by 32 to 5444 mill SEK (2014 4117 mill SEK) According to the companylsquos new president the year was strong for Alfa Laval with lsquorecord-breaking invoicing and earningslsquo despite the difficult market situation
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 27 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Sweden
Only imports of hot rolled sheets non-circular bars and seamless tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 781 1216 1368 941 740 920 598 1454 1174 824 742 791
CR Sheet 5466 5831 6808 6222 5549 7467 5373 7617 7195 7021 5904 4260
Round Bars 1030 1344 1379 1094 1121 1338 1189 657 1102 1476 1068 783
Non-circular Bars 122 116 298 187 167 188 221 115 206 262 230 214
Forged Bars 81 47 46 52 41 37 44 33 47 44 42 40
Profiles 150 101 143 110 224 53 215 80 128 122 289 104
Seamless Tubes 225 196 275 261 130 170 140 160 202 234 167 180
Welded Tubes (round) 879 834 1000 912 982 719 652 358 532 680 536 379 Welded Tubes (square) 236 215 248 212 154 242 308 126 196 321 206 201 All Products 8970 9900 11565 9991 9108 11134 8740 10600 10782 10984 9184 6952
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 9523 11549 21
CR Sheet 89641 74713 -17
Round Bars 13922 13581 -2
Non-circular Bars 2154 2326 8
Forged Bars 646 554 -14
Profiles 2158 1719 -20
Seamless Tubes 1820 2340 29
Welded Tubes (round) 10564 8463 -20Welded Tubes (square) 2739 2665 -3All Products 133167 117910 -11
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 28 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Sweden
Finland almost lost a third of its export volume to Sweden
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
FINLAND 16157 14670 6460 7250 44537 9014 9232 7303 6679 32228 -28SPAIN 7671 7298 5327 5122 25418 6179 4970 6394 5741 23284 -8ITALY 4077 3846 2858 3689 14470 4180 4116 3224 3495 15015 4GERMANY 4491 4093 2432 2189 13205 2777 3000 2762 2871 11410 -14DENMARK 3527 4154 2692 2572 12945 3095 3027 2708 3241 12071 -7FRANCE 1473 1458 1825 1531 6287 1997 1766 2069 1493 7325 17SOUTH AFRICA 1118 1896 1376 753 5143 484 1783 3190 1076 6533 27TAIWAN 244 158 539 964 1905 174 75 86 91 426 -78NORWAY 215 298 444 364 1321 847 273 201 76 1397 6UNITED KINGDOM 414 313 296 221 1244 346 441 541 569 1897 52JAPAN 157 261 176 383 977 190 294 304 156 944 -3NETHERLANDS 242 202 201 187 832 176 186 170 170 702 -16BELGIUM 178 311 113 136 738 38 30 21 25 114 -85INDIA 51 21 178 387 637 280 285 233 351 1149 80SWITZERLAND 67 157 166 198 588 121 78 42 60 301 -49TURKEY 94 100 129 141 464 73 121 186 204 584 26CHINA 54 116 249 39 458 29 28 28 27 112 -76AUSTRIA 124 121 75 73 393 149 55 55 82 341 -13U S A 52 128 96 59 335 8 56 47 76 187 -44SLOVENIA 84 73 82 47 286 40 112 64 94 310 8LUXEMBOURG 82 51 50 76 259 51 97 90 97 335 29OTHERS 125 266 146 188 725 187 208 404 446 1245 72TOTAL 40697 39991 25910 26569 133167 30435 30233 30122 27120 117910 -11
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
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Dec Feb
Apr
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Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
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Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 29 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Sweden ndash Stainless Steel Market Volume Index
Flat and long products with a similar trend in HY215
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
40
60
80
100
120
140
160
180
200
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
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Jun
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Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 30 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Norway
bull Investments in new oil and gas fields and even field extensions have stalled completely in 2015 and the entire supply chain moved to lsquode-stockingrsquo 60000 jobs were lost in the North Sea in 2015 But after many months and even quarters of lsquohorror-newsrsquo from the North Sea sector the Norwegian stainless market has recently shown some signs of life Obviously some items are now low on stock and distributors as well as fabricators as well as repair shops have placed first orders again recently
bull Statoil awarded Hereema Marine Contractors Nederland SE to remove Statoilrsquos Huldra platform from the Norwegian Continental and transport it to the shore where it will be disposed and recycled from AF Offshore Decom AS The platform was shut down in September 2014 after being operational since November 2001 for the production of gas and condensates During 2016 the six wells will be permanently plugged but the field will not be fully decommissioned before 2019 and no later than 2021
bull Yara International Sales of the Oslo-based chemicals producer grew by 173 to 111897 mill NOK in 2015 up from 95343 mill NOK in 2014 Yararsquos EBITDA in 2015 was 21361 mill NOK up by 301 on the companyrsquos 2014 EBITDA of 16407 mill NOK In 2015 Yara made investments in the amount of 11316 mill NOK which was around 156 lower than in 2014 at 13411 mill NOK At the end of the business year 2015 Yaralsquos workforce counted 12883 (+67 yoy)
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 31 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Norway
Stainless imports in Norway were down by 18 with declines in all product forms
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 659 779 639 634 414 531 156 271 584 812 437 404
CR Sheet 1126 1178 1545 1102 1051 1349 717 1143 1565 1225 1531 828
Rolled Bars 441 539 386 318 293 358 268 400 415 309 330 294
Forged Bars 89 99 146 134 66 106 154 72 36 73 98 73
Profiles 67 181 106 111 197 90 78 55 90 91 89 69
Seamless Tubes 286 215 433 342 259 397 194 189 218 193 283 146 Welded Tubes (round) 523 546 799 408 563 623 300 268 537 506 671 342 All Products 3191 3537 4054 3049 2843 3454 1867 2398 3445 3209 3439 2156
2014 2015 Change FY FY FY
HR Sheet amp Plate 6765 6320 -7
CR Sheet 17467 14360 -18
Rolled Bars 5893 4351 -26
Forged Bars 1434 1146 -20
Profiles 1661 1224 -26
Seamless Tubes 4670 3155 -32Welded Tubes (round) 6684 6086 -9All Products 44574 36642 -18
Products
Products
[tonnes]
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 32 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Norway
Out of the top 10 supplying countries only Finland and Italy managed to increase their deliveries to Norway
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3850 3156 2560 3478 13044 3488 2690 2325 2887 11390 -13FINLAND 2261 1976 1602 2256 8095 2119 2148 1754 2158 8179 1TAIWAN 1065 1763 1578 791 5197 1307 660 647 638 3252 -37GERMANY 1279 955 994 988 4216 715 705 784 653 2857 -32FRANCE 564 765 590 717 2636 444 569 313 404 1730 -34DENMARK 556 639 357 657 2209 512 561 294 456 1823 -17ITALY 618 443 330 533 1924 404 512 521 516 1953 2SPAIN 406 531 512 374 1823 273 287 204 87 851 -53UNITED KINGDOM 252 328 233 197 1010 280 120 134 156 690 -32CHINA 212 205 106 135 658 319 127 121 59 626 -5INDIA 226 139 159 108 632 138 165 111 89 503 -20BELGIUM-LUXEMBOURG 127 170 75 172 544 103 65 108 238 514 -6CZECH REPUBLIC 246 90 192 9 537 303 114 2 89 508 -5JAPAN 180 126 122 105 533 131 430 75 67 703 32AUSTRIA 114 132 93 101 440 34 26 28 12 100 -77NETHERLANDS 86 93 76 86 341 68 74 109 110 361 6POLAND 56 13 51 118 238 99 18 44 32 193 -19U S A 49 37 84 9 179 10 17 9 2 38 -79OTHERS 50 85 55 128 318 35 58 127 151 371 17TOTAL 12197 11646 9769 10962 44574 10782 9346 7710 8804 36642 -18
[ tonnes ]Country of Origin
2014 2015
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 33 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Norway ndash Stainless Steel Market Volume Index
After a strong Q315 the Norwegian market slumped in Q415
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
20
40
60
80
100
120
140
160
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 34 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Slovenia
bull The economic situation for Sloveniarsquos export and steel business was stable in March Prices remain under pressure as the alloy surcharge was only slightly higher in April and still plenty of material is somewhere around in the market or in warehouses Nevertheless end user demand and activity increased and distributors do not expect prices to fall further Order volumes also remained stable with a slight improvement in some business segments
bull Slovenian Steel Group SIJ has signed an agreement to purchase a 51 stake in Oro Met specialised in the manufacturing tool plates tool frames and CNC machined tool plates Oro Met is based in Košana Slovenija with a headcount of 55 employees which generated 86 mill EUR in 2014 The transaction value was not disclosed
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 35 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Slovenia
Major volume declines were only visible at low-volume products ending the year with a total plus of 34
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 748 1013 963 1297 1527 718 826 517 635 1012 663 212
CR Sheet 1741 1773 1601 1383 2044 2309 2540 1077 2804 2316 2044 1717
Round Bars 320 455 350 410 405 342 397 226 427 491 439 213
Non-circular Bars 26 46 56 48 51 54 56 23 65 39 46 42
Forged Bars 14 8 11 15 13 10 15 9 11 13 14 9
Profiles 43 63 70 49 36 35 41 21 26 34 34 23
Seamless Tubes 23 24 32 29 32 28 26 24 39 33 24 26
Welded Tubes (round) 180 231 242 268 182 318 289 168 282 269 205 212 Welded Tubes (square) 109 168 130 158 91 210 215 100 146 169 164 164 All Products 3204 3781 3455 3657 4381 4024 4405 2165 4435 4376 3633 2618
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 4662 10131 117
CR Sheet 18486 23349 26
Round Bars 3671 4475 22
Non-circular Bars 608 552 -9
Forged Bars 166 142 -14
Profiles 377 475 26
Seamless Tubes 451 340 -25
Welded Tubes (round) 3038 2846 -6Welded Tubes (square) 1597 1824 14All Products 33056 44134 34
[tonnes]Products
Products
2015
[tonnes]
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 36 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Slovenia
Italy South Korea and France managed to highly increase their deliveries to Slovenia
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
ITALY 3955 4430 3983 4377 16745 6418 8030 6052 7131 27631 65GERMANY 876 1374 1379 1513 5142 1212 1235 1423 1046 4916 -4AUSTRIA 883 655 638 626 2802 675 629 641 611 2556 -9SOUTH KOREA 106 377 206 452 1141 518 686 1067 59 2330 104CHINA 50 237 275 348 910 75 10 - 3 88 -90HUNGARY 426 214 122 132 894 262 166 285 160 873 -2POLAND 181 282 214 121 798 188 233 247 266 934 17FINLAND 139 196 201 195 731 155 163 311 235 864 18FRANCE 136 184 158 241 719 393 386 341 285 1405 95TAIWAN 86 126 170 313 695 127 - - 63 190 -73NETHERLANDS 97 128 148 175 548 127 147 163 137 574 5BULGARIA 68 195 85 25 373 67 23 3 - 93 -75INDIA 137 90 87 40 354 24 91 104 238 457 29SPAIN 230 33 38 5 306 - 3 - - 3 -99TURKEY - 44 86 58 188 51 85 141 191 468 149SWITZERLAND 32 48 29 55 164 64 44 38 42 188 15SOUTH AFRICA 100 11 1 - 112 - 57 40 - 97 -13CZECH REPUBLIC 16 25 37 33 111 18 21 34 13 86 -23OTHERS 57 126 54 86 323 66 53 115 147 381 18TOTAL 7575 8775 7911 8795 33056 10440 12062 11005 10627 44134 34
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 37 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Slovenia ndash Stainless Steel Market Volume Index
Despite a decline in flat products the general trend is positive
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
0
50
100
150
200
250
300
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 38 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Relevant Issues in Damstahl-Land
Finland
bull The Finnish stainless market became more and more lively in March after an already good start into 2016 Even though order books are filling the battle for customers became more intense and was carried out on the back of prices and margins
bull The Finnish government is progressing talks with the labour unions about a deal to improve Finlandrsquos competitiveness by cutting labour costs and stop Finlandrsquos public debt from growing In 2015 Finlandrsquos GDP grew by 05 after negative growth for three years
bull Outokumpu appointed Boumlllinghaus Steel as a distributor for its long products in particular special bar shapes which are produced in Outokumpursquos Sheffield operations in the United Kingdom The partnership will cover APAC Latin America and Europe excluding Germany and the United Kingdom
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 39 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Product
Imports of Stainless Steel Products into Finland
Total imports to Finland show a minus of 5 as only volumes for round bars forged bars and welded round tubes increased
Source SMR ndash Steel amp Metals Market Research Analysis
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
HR Sheet amp Plate 3015 2585 3119 2509 1627 3209 2729 3059 3052 2683 2412 1242
CR Sheet 1236 1243 1340 1722 1997 1576 1916 1770 1674 1670 1550 1110
Round Bars 417 514 424 456 402 491 422 397 495 519 477 477
Non-circular Bars 110 141 112 172 155 125 148 107 113 164 120 78
Forged Bars 20 34 43 24 41 34 30 36 25 48 29 18
Profiles 64 77 41 65 65 116 49 41 60 75 126 67
Seamless Tubes 83 79 149 188 83 131 79 112 181 140 130 113
Welded Tubes (round) 306 519 453 380 554 688 463 429 586 580 343 425 Welded Tubes (square) 37 128 143 107 120 116 98 46 139 152 48 65 All Products 5288 5320 5824 5623 5044 6486 5934 5997 6325 6031 5235 3595
2014 2015 ChangeFY FY FY
[]
HR Sheet amp Plate 33246 31241 -6CR Sheet 19752 18804 -5
Round Bars 5244 5491 5
Non-circular Bars 1597 1545 -3
Forged Bars 233 382 64
Profiles 948 846 -11
Seamless Tubes 2462 1468 -40
Welded Tubes (round) 5529 5726 4Welded Tubes (square) 1705 1199 -30All Products 70716 66702 -6
Products[tonnes]
Products[tonnes]
2015
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 40 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Imports by Country
Imports of Stainless Steel Products into Finland Belgium strongly increased its deliveries to Finland while Sweden remains the undisputed number one supplier
Source SMR ndash Steel amp Metals Market Research Analysis
HR SheetPlate CR Sheet Round Bars Profiles Welded and Seamless Tubes
ChangeQ1 Q2 Q3 Q4 TOTAL Q1 Q2 Q3 Q4 TOTAL 2014-2015
[ ]
SWEDEN 3912 4638 4746 4521 17817 5616 5741 6038 5992 23387 31CHINA 2526 3882 2049 1373 9830 1921 779 1390 563 4653 -53ITALY 2129 2420 2233 2501 9283 2187 2580 2255 2211 9233 -1FRANCE 2490 2991 1408 923 7812 1068 1448 1608 1311 5435 -30GERMANY 1313 1175 1567 1217 5272 1022 1209 1222 1202 4655 -12SPAIN 656 1626 1225 1719 5226 1314 761 1074 692 3841 -27U S A 1316 1195 907 730 4148 484 1480 1070 269 3303 -20BELGIUM 376 908 708 2044 4036 1609 1647 1892 1372 6520 62TAIWAN 246 656 483 181 1566 - - - - - -100SLOVENIA 206 309 225 373 1113 306 334 271 228 1139 2NETHERLANDS 169 316 244 205 934 189 245 269 211 914 -2SOUTH AFRICA 266 232 110 124 732 117 161 378 77 733 0DENMARK 112 109 135 106 462 140 124 102 115 481 4INDIA 105 67 110 65 347 52 124 49 101 326 -6UNITED KINGDOM 83 79 106 76 344 81 65 72 89 307 -11ESTONIA 68 69 64 104 305 42 40 108 85 275 -10PORTUGAL 42 24 73 133 272 23 85 43 55 206 -24POLAND 45 98 33 69 245 67 77 116 61 321 31LUXEMBOURG - - 90 77 167 82 35 143 68 328 96CZECH REPUBLIC 16 52 53 33 154 41 39 34 24 138 -10AUSTRIA 40 27 27 51 145 33 30 32 49 144 -1JAPAN 16 3 6 108 133 9 67 14 2 92 -31OTHERS 128 86 78 81 373 29 82 76 84 271 -27TOTAL 16260 20962 16680 16814 70716 16432 17153 18256 14861 66702 -6
Country of Origin2014 2015
[ tonnes ]
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 41 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
0
50
100
150
200
250
Oslash 2
011
Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec Feb
Apr
Jun
Aug
Oct
Dec
[Oslash 2
011
= 10
0]
Flat Products
Long Products
Finland ndash Stainless Steel Market Volume Index
Flat and long products stabilised towards yearrsquos end
Source SMR - Steel amp Metals Market Research Analysis Data based on country-reported trade figures and estimated production volumes
2011 2012 2013 2014
Trend Lines
2015
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 42 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Raw Materials
Nickel
Chrome
Molybdenum
Scrap
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 43 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 43
Raw Materials
Nickel
Coming back from the bottom
bull The recovery of Class I nickel prices in early March to around 9400 USDt was cut short when prices again fell by around 1000 USDt towards the monthrsquos end Even though prices started to climb again to 9000 USDt in early April the market conditions for a long-term recovery are still missing Recent price increases were partly driven by a strengthening euro against the US dollar
bull Prices of nickel in NPI in March were in a range of 9068-9100 USDt and rose to around 9165 USDt in early April Nickelrsquos declining price development since the latter half of 2014 have made the primary metal a more attractive raw materials
bull The reappearance of premiums for FeNi and diminishing discounts for stainless steel scrap let assume that a certain tightness in stainless steel relevant markets is already there
bull A number of more positive news from stainless steel intensive sectors of the Chinese economy in combination with an expected stainless steel crude steel increase of ~5 in 2016 (SMR) could support a further strengthening of Ni prices
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 44 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 44
Raw Materials
Chrome
Oversupply and poor demand lead to a long-time price low
bull The European FeCr benchmark price agreed between mills and South African FeCr smelters was lowered from 092 USDlb in Q116 to 082 USDlb in Q216 corresponding to a decline of around 11 falling for the second consecutive quarter Oversupply and poor demand dragged the price levels to the lowest rate in seven years
bull According to producers import prices for South African FeCr increased due to the revaluation of the South African rand against the US dollar In 2015 almost 75 of the FeCr imports to China originated from South Africa
bull Also FeCr prices have most likely reached the bottom as the Chinese FeCr producers are unprofitable and the South African rand has gained strength against the US dollar making ore imports (incl UG2) to China more costly
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 45 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 45
Raw Materials
Molybdenum
Balance and stability
bull After a rollercoaster ride with only small ups and big downs in 2015 prices for ferromolybdenum (FeMo) seem to have somewhat stabilised in 2016 April prices started off just above 14 USDkg and since then hover around the 14 USDkg mark mirroring a market that seems remarkably balanced at the moment Prices for molybdenic oxide (MoO3) were largely static at around 1157-1179 USDkg with only marginal variations of +- 010 USD at either end
bull Partial shutdowns and cutbacks in production at some producers are expected to help to achieve an even more sustained recovery of the market later in 2016
bull The Mo market could run into a deficit situation (but no shortage) in 2016 especially if China continues to re-fill its strategic stock
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 46 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group 46
Raw Materials
Scrap
Still lacking momentum
bull Also in March 2016 the stainless steel scrap market is lacking any momentum Stainless steel mills consider type 304 scrap still as lsquotoo expensiversquo and not attractive against alternatives but scrap processors argue that at todayrsquos prices they are unable to secure sufficient volumes especially if the melt production in Q2 would increase
bull Prices for type 304 stainless steel scrap solids recovered to around 860 EURt in early March but then again fell back to around 838 EURt in early April Prices for type 304 turnings were calculated at a discount of around 15 of the solidrsquos price level and were traded at around 712 EURt in early April
bull Nevertheless stainless steel scrap prices stay on the high side as it enjoys a higher resistance to the volatility of the current raw material market due to a lack of availability Small and medium-sized traders keep on speculating on the purchasing side and hold their inventory until prices recover again limiting the already tight supply base
bull ELG Europersquos largest scrap processor looks back on a difficult year Low margins at falling nickel and iron prices weighed heavy on the companyrsquos EBITDA which turned from a 59 mill EUR plus into a 6 mill EUR minus in 2015 Also the companyrsquos output volumes fell by 12 yoy ELG does not see an improvement in the market environment but states that it has a more stable basis even though the current base is on a lsquoterribly low levelrsquo
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 47 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction The old new driving force for the stainless steel industry
(Sur)Facing a shiny future
Focus of the Month Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 48 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Employment in EU28rsquos main construction countries
Architecture Building and Construction follows very different paths in Europe Employment is a result of the lsquohealthlsquo of this industry in each country Germanylsquos employment in the construction industry remained relatively stable in recent years while Spainlsquos workforce was drastically reduced since the financial crisis
Source Oxford Economics
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inde
x [2
000=
100
]
Germany UK
France Italy
Poland Spain
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 49 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Building and Construction in Europe
Stainless steel used in construction accounts for roughly 20 of the total Flat Product market and 10 of the Long Product market
Building Cladding
Elevators amp Structures
55
Public Space Architecture
20
Heating Cooling Ventilation Hot Water Systems
8
Other ABC amp Water
Infrastructure 17
European Market 2015
950 kt
+ Residential housing strengthening + Numerous stainless components for
upscale homes (incl pools) + Water Infrastructure Investments + Bridges (towel bars drainage pipe
re-bars ) + Stainless Facades in public buildings + Increasing number of Migrants need
homes
Alternative Materialssurfaces for - Kitchens - Sinks - Elevators
Source Steel amp Metals Market Research GmbH
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 50 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Arcitecture Building and Construction (ABC)
Flat products account for the vast majority in all Construction segments
Flat 91
Long 9
Source Steel amp Metals Market Research GmbH
PMP 2
Welded Tubes 36
HR Coils 6
CR Coils 56
Stainless Steel Product Forms in Architecture Building and Construction
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 51 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Stainless steel types used in the construction industry In spite of heavy efforts to develop Ni free solutions (400 Series) for ABC 300 series still dominate
Mo 300 18
Other 300 64
400 series 14 200 series
2 Duplex
2
Stainless Steel Types in ABC
Source Steel amp Metals Market Research GmbH World Wide Web
Stainless Steel Radiators
Public Escalators
Public Elevators
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 52 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Residential Commercial Infrastructure Building in Europe
All future indicators are up in Europe Eg Germanylsquos order intake in the building and construction sector increased by over 10 yoy in Q116 The real estate sector will benefit from the zero-interest situation in coming years
20
40
60
80
100
120
140
160
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Inde
x [2
000=
100
]
Residential
Commercial
Infrastructure
Source Oxford Economics
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 53 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
The Beauty of Stainless Steel
Google Asia Singapore Stainless Steel Type 304
Cloud Gate AKA The Bean - Millennium Park in Chicago Illinois Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 54 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
Peterson Automotive Museum California Stainless Steel Type 304
Eli amp Edythe Broad Art Museum in Lansing Michigan Stainless Steel Type 316
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-
Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group Damstahl Stainless Steel Report No 102 - April 2016 55 copy Damstahl 2016 Damstahl - a member of the NEUMO-Ehrenberg-Group
Reflection of the Month The sun is out but the wind still feels chilly
Quote It is increasingly consensus that market has hit the bottom But I would like to see still more structural supply side consolidation around the globe to bring production in balance with demand that will be stable this year But we need to address margins which are nowhere satisfying Stop selling to customers which do not allow you a profit
Markus Moll Managing Director of SMR GmbH
- DamstahlStainless Steel Report 102 April 2016
- Contents
- Faintly Seeing a Glimpse of Sun
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- Stainless Steel at a Glance
- European Industry News PMI Status
- European Industry News
- Where do we Stand in the Business Cycle
- Relevant Issues in Damstahl Land
- Stainless Steel Flat Product Imports 2015 vs 2014
- Stainless Steel Long Product Imports 2015 vs 2014
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Germany - Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Netherlands ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Denmark ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Sweden ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Norway ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Slovenia ndash Stainless Steel Market Volume Index
- Relevant Issues in Damstahl-Land
- Imports by Product
- Imports by Country
- Finland ndash Stainless Steel Market Volume Index
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Raw Materials
- Focus of the Month Building and Construction
- Employment in EU28rsquos main construction countries
- Building and Construction in Europe
- Arcitecture Building and Construction (ABC)
- Stainless steel types used in the construction industry
- Residential Commercial Infrastructure Building in Europe
- The Beauty of Stainless Steel
- Unfortunately all examples shown are from outside Europehellip Maybe a wake up call for European architects
- Reflection of the MonthThe sun is out but the wind still feels chilly
-