World Steel Production Up 1.9% in 2012 to 1.55 Billion Tons, Despite Slowdown

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--World steel production will see a year-over-year increase of 1.9%, despite the economic slowdown. MEPS (Sheffield, England), an international steel industry consultancy, reports that in 2012, global steel production is expected to reach 1.55 billion tons, and a further increase is anticipated in 2013.

But in the European Union (EU), steelmaking will decline 4.5% in 2012, as regional producers continue to restrict supply in response to weak demand caused by the fragile economic situation.

In non-EU Europe, a year-over-year increase of 1.3% is projected for 2012, with production reaching 153.7 million tons. Turkish steel output continues to show a strong expansion, and growth in Russia will offset the declines elsewhere in the Commonwealth of Independent States (CIS), which consists of former Soviet Union countries.

In North America, output is forecast at 121.8 million tons, up on the 118.9 million tons for 2011. But following a strong start to the year, steel mills are now trimming their capacity utilization.

South American production will decline 2.5% in 2010 to 47.2 million tons, down from 48.4 million tons in 2011. In 2012, imports have increased their share in local markets.

Steel production in the Middle East is projected to increase nearly 8% to 40.2 million tons, from 38.7 million tons in 2011. New plant installations are lifting output. Africa is forecast to experience a decline in output this year.

Chinese crude steel product is forecast to come in at 750 million tons in 2012, up from 684.6 million tons in 2011, which is an increase of more than 9.5% for the year. The Chinese official figure for the year is 715 million tons, but MEPS believes this total is understated by at least 35 million tons.

Indian steel production continues to be constrained by raw material supply disruption, so the country only has a year-over-year growth of 3%. Japanese production is expected to show little change this year after it saw a decline in 2011. South Korea should reach a record-high production figure this year, although the total will be fairly modest following the surge witnessed in the previous year. For related information, see October 15, 2012, article - Worldsteel Cuts Global Demand Forecast for 2012, 2013.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.