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.