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    Sector Briefing - Steel Industry Overview: Fig.2 Major Steel-Producing Countries

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    Himadri S
    1) The global crude steel production was 1,665 million tonnes in 2014, a 1% rise from 2013, with China accounting for 49.4% of production. 2) The largest consumers of steel are the building and construction sector (50%), machinery (16%), and automotive (13%) sectors. 3) The global steel industry faces challenges of overcapacity at 23% in 2014, declining steel demand and prices, and weakening credit profiles as the industry struggles with profitability.

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    Sector Briefing - Steel Industry Overview: Fig.2 Major Steel-Producing Countries

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    Himadri S
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    1) The global crude steel production was 1,665 million tonnes in 2014, a 1% rise from 2013, with China accounting for 49.4% of production. 2) The largest consumers of steel are the building and construction sector (50%), machinery (16%), and automotive (13%) sectors. 3) The global steel industry faces challenges of overcapacity at 23% in 2014, declining steel demand and prices, and weakening credit profiles as the industry struggles with profitability.

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    1) The global crude steel production was 1,665 million tonnes in 2014, a 1% rise from 2013, with China accounting for 49.4% of production. 2) The largest consumers of steel are the building and construction sector (50%), machinery (16%), and automotive (13%) sectors. 3) The global steel industry faces challenges of overcapacity at 23% in 2014, declining steel demand and prices, and weakening credit profiles as the industry struggles with profitability.

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    25 views2 pages

    Sector Briefing - Steel Industry Overview: Fig.2 Major Steel-Producing Countries

    Uploaded by

    Himadri S
    1) The global crude steel production was 1,665 million tonnes in 2014, a 1% rise from 2013, with China accounting for 49.4% of production. 2) The largest consumers of steel are the building and construction sector (50%), machinery (16%), and automotive (13%) sectors. 3) The global steel industry faces challenges of overcapacity at 23% in 2014, declining steel demand and prices, and weakening credit profiles as the industry struggles with profitability.

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    Fig.

    4 India
    Fig.1- Global
    Total Finished
    Crude Steel
    SteelProduction
    (alloy + non-alloy)
    and Use(Million
    Tonnes)
    100 (Million Tonnes)
    2,000 87.7
    81.7 1,649 1,665
    1,537 75.7 1,559 1,537.3
    80 1,433
    1,380.268.6 1,411.8 71.0 1,439.373.5 1,528.4
    74.1
    1,500 66.4 65.2
    60.659.3
    60 55.3
    1,000
    40
    500
    20 Fig.3
    Fig.5 India - Steel Fig.2
    Exports Major
    Indiaand Steel-producing
    - Crude
    Imports
    Others Steel (Million Countries
    Tonnes)
    9 Sector
    (Million Tonnes)
    120 88%Briefing
    0 88% – Steel
    7.9
    17.2%
    101
    90%
    8 7.4 2010Ukraine
    2010 2011
    2011 2012972012 2013 2013 2014 Apr-Dec
    2014
    6.7 100 6.9 91 88%
    7 6.5 81.7
    75 1.6%
    80 6.0
    74.3 78.4 76 2015*
    86%
    Brazil
    5.4 5.5
    6 Industry
    80
    4.6 Overview
    Crude
    65.8 Steel 70.7
    Production
    Production
    Turkey
    2.0%
    Steel
    RealUse
    Consumption
    (finished steel products)
    62.4 84%
    5 Germany 82% 4.1 82%
    4 3.3 3.660 2.0% 81% 81%China 82%
    2.6%
    Russia 49.4%
    3 40 Global
    4.3% 80%
    2
    1
    20
    South 78%  The global crude steel production stood at 1,665 Million Tonnes
    0 0 Korea
    India 76%(December 2014), marking a 1% rise as compared to 2013 (Fig.1).
    2010 2011 2012
    2010 2011
    2013
    4.3% 2012
    2014 Apr-Dec
    2013 2014 Apr-Dec
    5.2%
    US 5.3% 2015* 2015*  Crude steel production reached 1,345 Million Tonnes during
    Japan
    Import Capacity ExportProduction Capacity Utilization (%)
    6.0% January-October 2015.
     The global steel use (finished steel products) stood at 1,537.3 Million Tonnes, in December 2014 (Fig.1), with China accounting
    for almost 46.2% of the total produce.
     Building and construction sector is the largest consumer of steel, utilising about 50% of the steel produced, followed by
    machinery (16%), automotive sector (13%) and metal products (11%).

    Challenges facing the Global industry


     The global steel industry has reached the end of a major growth cycle, which was based on the rapid economic development of
    China.
     During 2004-2014, the global idle capacity increased from 17% in 2004 to approximately 23% in 2014. The rising share of idle
    capacity continues to pose a major threat to the global steel industry.
     With no significant improvement in the economic indicators, the major steel producing countries are facing over capacity due to
    an environment of declining steel demand, which has led to a drop in price.
     The declining profitability of a sector that is highly capital intensive as well as the rising debt levels have significantly weakened
    the credit profile of the industry globally. Steelmakers across the globe are increasingly finding it difficult to support the prices of
    finished steel products.
    – Global steel prices are at their lowest since 2003, and steadily falling. This has posed challenges for global giants, such as
    US Steel and Posco, whose profits have been under pressure for the past one year.
    – US Steel’s Net loss has amounted to US$509 million in the nine months ended in September 2015, as compared to US$173
    million during the same period in 2014.
    – Further, Posco also reported a net loss of KRW658 billion (US$0.6 billion) in Q3 2015 as compared to a net profit of
    KRW117 billion (US$0.1 billion) in Q2 2015.
     In 2014, China accounted for 49.4% of global crude steel production, followed by Japan, US and India (Fig.2).
     Over the last decade (2004-14), China has been the sole driver of global steel demand. However, the significantly reduced
    demand from the real estate and infrastructure sector has led to a decline in Chinese steel consumption for the first time ever in
    last two decades.

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