The world’s crude steel production reached 1,607.2 million metric tonnes (mmt) in 2013. China accounted for almost half of the total production (48.5%), leading the rank of crude steel production, as shown in table 1. Followed by EU, Japan and USA, the top 3 crude steel producers in the world also represent the largest exporters of the goods, except for USA (ranked number 10) whose rank position has been occupied by South Korea, according to table below.
As result of the global recession, the output in the majority of steel producing countries fell in 2008 and 2009. But it rose again in 2010. Now, experts at MEPS International expect that the crude steel output will rise from 783.5 million tonnes in 2013 to 810 million tonnes this year. This would translate into 24 million tonnes of extra supply of finished steel products for sale by the steelmakers in 2014. Just 27% (6.5 million tonnes of the increased production of steel) is likely to find its way on to the domestic market this year. In other words, the total exports of all finished steel products in 2014 will be a new record of, at least, 80 million tonnes, representing the fifth consecutive year of rising sales to the global market.
With China’s apparent consumption of finished steel expected to be approximately 740 million tones in 2014, the extra local mill supply will represent less than 1 percent of the total market. It is clear that, by concentrating their sales efforts on exports, the steelmakers have eased some of the pressure which has been developing on the domestic market from oversupply. This exercise has not been a complete success because weakening demand has pushed average selling values down by almost RMB200 per tonne (5 percent) since the start of the year. At the same time, the competitively priced exports from China have contributed to a reduction in domestic prices in many other parts of the world.
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Source and photo credit: Wikipedia, Scrap Register
Camilla G.//SMC Editor
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