Stainless steel demand, investments increase in Asia
Stainless steel demand, investments increase in Asia
SINGAPORE (AFP): Asia's consumption of stainless steel is poised to expand more than 50 percent to six million tons a year between now and 2000 as demand increases for products ranging from cars to cutlery, an expert said.
As more developed economies such as South Korea and Taiwan mature and their growth slows, new fast-growing economies such as Malaysia and Thailand are driving up the use of stainless steel, said Peter Peel of the British steel firm Avesta Sheffield.
In a presentation at a steel industry conference ending here yesterday, Peel said consumption of the alloy would grow to 6.06 million tons by 2000 from 3.915 million tons in 1995, an increase of 55 percent.
"As living standards improve and demand grows for goods like cars and microwave ovens, and as more people go out to eat, there will be greater demand for stainless steel," Peel told Asia's steel sector representatives Thursday.
China's consumption growth is expected to average 11.3 percent annually to reach 1.1 million tons. Japan, Asia's largest user of stainless steel, will average 3.9 percent growth in consumption to 1.79 million tons.
Taiwan's consumption of stainless steel in 2000 was put at 990,000 tons, growing at an average annual rate of 8.4 percent, and South Korea's is to expand 8.2 percent to 930,000 tons.
Thailand's consumption will grow the fastest at an annual average of 14.3 percent to 290,000 tons, Indonesia's at 13.5 percent to 150,000 tons and India's at 8.2 percent to 450,000 tons, Peel said.
Growth was forecast to peak by 1996-1997 followed by a slowdown.
"A major factor in this will be slower growth in the United States as exports to America are an important driver in economies such as Korea and Taiwan," Peel told representatives of the Asian steel sector.
The first commercial stainless steel, chrome steel that resists rust or tarnish, was invented by Harry Brearley in Sheffield in 1913 as a spin-off from his research into improved steels for guns. World production of stainless steel grew from one million tons in 1950 to 13 million tons in 1994.
Peel attributed stainless steel's growing popularity to the development of increased production scales and new technology that had reduced production costs and price levels.
He also cited the metal's resistance to corrosion, temperature tolerance, and its hygienic and aesthetic appeal and durability.