Industryweek 10204 Steel

World Steel Output Drops after 5 Year Rise

Jan. 25, 2016
US production dropped 10.5% moving the U.S. world share down to 4.9% from 5.3%.

Reflecting a global economic slowdown, worldwide steel production dropped 2.8% last year to 1.62 billion tons, just under half of the total produced by China, the World Steel Association said Monday.

Global steel production slipped back after five years of constant rises, with China, easily the world's largest consumer and producer, last year producing 803.8 million metric tons (Mt), down 2.3% on 2014.

Its actual share of world output, however, increased by 0.2 percentage points to 49.5%.

The rise of China's steel market share comes as competitors accuse Chinese steel firms of dumping their production onto world markets at prices below cost.

Monday's figures took up official Chinese National Bureau of Statistics data released last week which showed Chinese steel output dropping last year for the first time since 1981 in a sector buffeted by overcapacity.

"Crude steel production decreased in all regions except Oceania in 2015." the WSA said following the first overall annual drop since 2009, when overall output stood at 1.24 billion tons.

Last October, the WSA had initially forecast a 1.7% rise in world demand for 2015, followed by a 0.7% rise this year.

Its next forecasts are due in April. The association estimates it represents more than 150 steel producers covering some 85% of world production.

Japan, the world's second largest producer, saw 2015 output slide 5% to 105.2 Mt.

Indian production rose 2.3% to 83.2 Mt, propelling it to number three globally with a 5.5% share from 5.2% previously while South Korea fell back 2.6% to 69.7 Mt to retain a constant overall share.

Asia overall saw production fall 2.3% to 1.11 billion tons.

Last year saw EU states produce 166.2 Mt of crude steel, a decrease of 1.8% on 2014. Germany dipped just 0.6% -- number five producer Russia, a non-EU member, likewise fell just 0.5%, to 71/1 Mt -- but Italy and France slumped seven percent.

Spain, however, produced 14.9 Mt in 2015, an increase of 4.4%.

The overall EU share was barely changed at 10.2%  from 10.1% in 2014.

North American production came in 8.6% lower at 110.7 Mt, with fourth largest producer the United States seeing production dropping 10.5% to 78.9 Mt. That moved the U.S. world share down to 4.9% from 5.3%.

Leading South American economy Brazil saw production off 1.9% to 33.2 Mt.

The overall world steel capacity utilization ratio fell to 69.7% from 73.4% in 2014.

Copyright Agence France-Presse, 2016

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