According to industry analyst Mr Markus Moll of SMR in Austria, after experiencing a volatile 2007, the stainless steel industry is likely to enjoy a less turbulent 2008.

Mr Moll while giving a presentation at the Bureau of International Recycling Stainless Steel & Special Alloys session entitled “Mostly Sunny with Local Showers” remarked that the 2007 inventory de stocking that caused the turbulence last year is now over. He said that “2008 should be a year of growth for most producers of stainless steel, which also projects steady growth in stainless steel production through 2012. Producers in the United States are in a good position to export right now because of the weak dollar and investments in efficient mill technology.”

Mr Moll said that “The high cost of nickel has caused considerable exploration and some shifting to 200 series and 400 series products and away from 300 series grades. But he remarked that this trend may have peaked. The cost advantages of 201 or 430 productions are decreasing as chromium prices increase predicting a renaissance for 304 stainless.”

He noted that different participants in the supply chain, ranging from steel service centers to scrap yards to melt shops, have also discovered hidden costs in trying to adopt new processes or find additional storage space for 200 and 400 series metals and feed stocks for such metals.

Mr Moll remarked that despite some local showers such as less than stellar economies in the United States and Japan, the outlook for stainless steel is mostly sunny for the rest of 2008.