Annual Report 2010 - Outokumpu

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Market review
Global demand for stainless steel increased significantly in 2010 as the world embarked on a recovery from the financial
crisis. The recovery was particularly strong during the first half of the year, creating good demand and leading to a 44%
increase in stainless steel production compared to the first half of 2009. While the recovery continued in the second half
of the year, levels of growth were more moderate. Overall, stainless steel production increased by 25% in 2010, following
a decline of 5% in 2009 (ISSF).
Global end-use consumption of stainless steel increased by 13% in 2010 following a 3% decline in 2009. Growth in enduse
consumption was positive in all regions and highest in China, where end-use consumption grew by 16% in 2010, up
from 15% in 2009. Elsewhere in Asia, consumption grew by 15% after declining 6% in 2009. In the Americas,
consumption increased by 9% following the 24% decline in 2009. In Europe, end-use consumption grew at the rate of
7%, after a 16% decline in 2009.
Demand in consumer-led industries in 2010 was higher than in more industry-focused stainless steel consuming
segments which continued to be impacted by restrictions on the availability of finance for investment projects. In 2010,
consumption in all end-use clusters was higher than in 2009, with the largest growth occurring in the transportation,
process & resources and catering & appliances clusters. The lowest growth figure was recorded in the architecture,
building & construction cluster.
In the transportation cluster, end-use consumption of stainless steel grew by 19% in 2010, following a decline of 10% in
2009. Automotive companies sought to rebuild inventories of parts and work in progress after the severe reductions in
stock levels that took place in 2009. Sales of finished automotive vehicles were also good, particularly in emerging
economies.
Global stainless steel consumption in the architecture, building & construction cluster increased by 7%, following a 3%
decline in 2009. Although activity in this cluster in developed economies remained modest, demand was strong in
developing economies, particularly China and India where the urbanisation process continues.
Catering & appliances was the only end-use cluster in which stainless steel consumption increased in 2009 and
consumption in this cluster grew by a further 14% in global terms in 2010. Growth was strongest in emerging markets, for
example the quantity of stainless steel consumed in producing white goods rose by more than 30% in China. In India, the
Outokumpu Annual Report 2010 – Business – Market review