SHANGHAI The outlook for stainless steel demand in China is cautious for the fourth quarter, an executive at Baosteel Group Corp. told AMM sister publication Steel First Sept. 3 at the 8th China International Stainless Steel Congress in Shanghai.
The price rebound seen thus far in the third quarter is expected to be as far as prices will grow this year, Baosteel president Cui Jian said on the sidelines of the conference.
The rebound came after tags fell steadily for five months in the first half of the year, but the recovery has little chance to be sustainable, he said.
"Its unlikely there will be big changes in the stainless steel market now, as the market would have to stay at its current level in the fourth quarter," Cui said.
Chinas stainless steel consumption is expected to edge up slightly for the year, but the price of stainless steel is at a low level now. This has strengthened consumers purchasing power, he added.
Market participants at the conferencejointly sponsored by the China Iron and Steel Association, the Stainless Steel Council of China Special Steel Enterprises Association, the Metallurgical Council of China Council for the Promotion of International Trade (MC-CCPIT) and the Metallurgical Center for International Exchange and Cooperation (MCIEC)expect consumption growth in 2013 to be 5 percent or less.
A version of this article was first published in AMM sister publication Steel First.