Due to the European economic recession, coupled with the major consumption of stainless steel industry of the automotive and construction industries funding constraints,the stainless steel demands in Europe is expected to continued weakness,may it would be rebounded in 2013 at the earliest.

The VAI board members FranzRotter said, without any signs of a rebound in the stainless steel market, optimisticly estimates as early as next year demand rebounded.Now European and global steel market is currently facing an unprecedented impact, including the European debt crisis, economic recession, overcapacity as well as a slowdown economy in China. Now most of the stainless steel manufacturers around the world are operating at a loss indicating that the European stainless steel demand continues to decline.

Overcapacity and weak demand is the main problem that plagued China's stainless steel industry. Although the Chinese government recently approved the $ 157 billion in infrastructure projects has boosted the Steel market, but still not enough to sustain the recent rebound in steel prices. Steel mills said the government's support have to be strengthened again.

                                                                        From  XINSTEEL NEWS