From January to November of 2011, 32 special steel enterprises in China produced 8,777 tons of high temperature alloy steel, up 35.07% from 6,498 tons in the same period of 2010.In November 2011, 32 special steel enterprises in China produced 1,255 tons of high temperature alloy steel, up 68.91% MoM or 63.62%YoY.

High Temperature Alloy Steel Output of 32 Special Steel Enterprises in China, Jan. to Nov. 2011

Source: Mysteel, ResearchInChina

The global annual consumption of high temperature alloy steel is 300 kt. The annual output of high temperature alloy steel is 10 kt in China, while the annual demand can be at least 20 kt (market capacity more than RMB8 billion). The gap between the output and the demand reaches 10 kt.

Currently, high temperature alloy steel used in gas turbine and nuclear power is mainly imported. What is more, the insufficient supply of high temperature alloy steel will be more obvious in China, with the research and development on more advanced aviation and aerospace engines. It is estimated that annual demand for high temperature alloy steel used in aviation and aerospace engine and gas turbine will be 3,000 tons or so, and the average annual growth rate will be above 15% in the next three years.