Will the expectations be real?

Implications: The stainless steel market is strongly dependent by the Chinese market. Stainless steel production has been so far below expectations and it will be very difficult any recovery during the second half of the year. 

Analysis: At the meeting of the International Nickel Study Group (INSG) - April 2008 - ISSF presented a forecast for world stainless steel production at 30.2 million tonnes , a 9 per cent increase compared to 2007.
The 29 million tonnes forecast, as reported in this newsrelease, appears to be a first revision and maybe not even the last one.

Stainless steel melting production in the first four-five months of 2008 has been certainly below expectations, especially after a long period of destocking which lasted for great part of 2007. In Europe and USA manufacturing acitivity doesn't seem to perform particularly well negatively affecting the portfolio orders of most stainless steel mills. But even in China, stainless steel mills have decided to cut production due to  disappointing market  conditions. Being the the first half of the year usually the strongest in terms of production it seems unlikely any recovery during the second half also considering the possible closure of manufacturing activity in the Bejing area prior, during and immediately after the Olympic games in China.