[Ferro-Alloys.com]The 11^th China Ferro-alloys International Conference & Metallurgical Exhibition opened on the 14^th -16^th, May, 2014 in V-Continent Beijing Parkview Wuzhou Hotel, which was co-hosted by China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) & Ferro-alloys.com.

In the morning of 15^th, May, Ms. Jo Zhu –China Representative, SMR GmbH presented a report on Global Special Steel Status Quo and Outlook –Implications for Special Alloys. Firstly, Ms. Zhu looked back to the global steel industry by steel type growth. The total stainless steel production increased about 8% in 2013, reaching 35,600,000mt. The stainless growth rate averaged 5% in the world V.S. 15% in China.

Global demand forecast for 2013 was better than expected, but we totally underestimated China, who reported growth of 13%. Adjusted flat product capacities of 2013 –2020 increased 6 mn tones, and China & India counted over 90% of all additional capacities. China shaped the stainless steel world in recent years.

There are several hundred ‘000mt of additional possible capacity in discussion for 2013-2015. LME (3-month) nickel price was banded between USD10.5/lb and USD13/lb. Ferrochrome of Q1 /14 was 1.18 $/lb, 5% higher than that of Q4/13. China took 32% shares of global moly production, next to North America 30% and South America 30%. Most shares were Cu-by products.

Key takeaways from Raw Materials were nickel, chrome, moly, stainless scrape. Nickel Pig Iron (China) is a ‘game-changer’, all eyes are on Indonesia since the ore export ban, which is in place since January 2014. The biggest producer -South Africa -is still suffering from electricity problems, which provides an advantage to the Chinese industry. Copper mine by-product production is rising. The U.S. could turn from a net-exporter to a net-importer when Outokumpu Calvert is in full operation.

EBIT margins in Raw Materials are substantially higher than in the downstream Industry segments. 2014 will bring a “turnaround” of stainless steel in Europe.

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• [Editor:Mango]