Brussels, 26 September 2006 - The International Stainless Steel Forum (ISSF) has announced that world stainless crude steel production in the first six months of 2006 stood at 13.9 million metric tons (mmt). This is 6.5% higher than for the same period of 2005. All regions have contributed to this strong growth.

Stainless steel melting in Asia grew by 8.1% to 7.1 mmt. Driving forces were China (+44%) and India (+10%). China produced 2.3 mmt of stainless crude steel in the first half of the year and is now the leading stainless steel producing country in the world. The strong increase in production is partially caused by new capacities coming on-stream this year.

The second biggest producing region is Western Europe/Africa where stainless steel production increased by 3.5%. Total production for the region in the first half of 2006 is 5 mmt.

Table 1: Stainless and heat-resisting crude steel production (in ‘000 metric tons)

Region	Full year		+/- %	First six months		Y-o-Y +/- %
	2004	2005		2005	2006
Western Europe/Africa	9,422	8,823	-6.4	4,866	5,037	3.5
Central and Eastern Europe	318	310	-2.5	149	184	23.6
The Americas	2,933	2,688	-8.3	1,460	1,568	7.4
Asia	11,897	12,498	5.0	6,552	7,083	8.1
World total	24,570	24,319	-1.0	13,027	13,873	6.5

Source: International Stainless Steel Forum (ISSF)

The Americas increased their stainless crude steel production by 7.4% to 1.6 mmt. Production in the Central and Eastern Europe region increased by 24%, mainly due to sharp increase in production in Russia.

The global growth rate after the first quarter of 2006 stood at only 0.5% when compared to the first quarter of 2005. Total world stainless crude steel production in the first quarter of 2006 was 6.6 mmt. Comparing the second quarter of 2006 to the same period of 2005 shows that production increased by 12.6% to 7.3 mmt in the quarter. This is an all-time-high for a single quarter. ISSF believes the increase can be attributed to both an improvement in general economic development, and the need for stainless steel suppliers to re-fill empty stocks.

Table 2: Stainless and heat-resisting crude steel production (in ‘000 metric tons)

Region	Quarter 1		+/- %	Quarter 2		+/- %
	2005	2006		2005	2006
Western Europe/Africa	2,448	2,421	-1.1	2,417	2,615	8.2
Central and Eastern Europe	70	87	24.7	79	97	22.7
The Americas	731	760	4.1	730	808	10.7
Asia	3,336	3,348	0.4	3,216	3,735	16.1
World total	6,585	6,617	0.5	6,442	7,256	12.6

Source: International Stainless Steel Forum (ISSF)

In the second quarter of 2006 all regions, except Western Europe/Africa, showed double digit growth rates compared to the second quarter of 2005.

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