Mr Markus Moll MD of Steel & Metals Market Research has recently indicated that European stainless steel mills currently operate 60% to 70% production capacity. As a result, they have faced difficulty to make profits.

He added that global stainless steel industries must improve the capacity utilization rate to develop the stainless steel market.

At present, the European stainless steel mills have been facing the surplus production capacity. However, the demand for stainless steel has remained sluggish due to concerns on debit crisis.

Thus, some European stainless steel industries have planned to restructure to eliminate the surplus production capacity.

It is known that ArcelorMittal split its stainless steel department in the beginning of this year and set up Aperam. Also, ThyssenKrupp announced the restructure plan for its stainless steel business. The company is currently estimating if the split of stainless steel business is workable.

(Sourced from www.yieh.com)