GLOBAL STEELMAKING TO
RECOVER AFTER SLOWDOWN IN 2015/16
Following rapid growth in world steel production to 2014, the
situation has changed. MEPS predicts that the high point for global
steelmaking in that year will not be overtaken
until the start of the next decade.
The main reason for this change of fortunes for the steel sector is
the expectation that the Chinese mills will maintain their, recently
introduced strategy, of reduced investment in new capacity and the
elimination of outdated production facilities. Furthermore,
steelmakers in the industrialised nations are also expected to
restrict output to below the 2014 peak volumes over the next five
Steelmaking using the blast furnace route, in 2020, is expected to
be significantly below the outturn in the 2013/14 peak years. By
contrast, supply from the direct reduced iron process is forecast to
rise substantially over the next five years.
Despite minimal growth in output of steel, in China, between 2016
and 2020, total Asian production is projected to increase by
approximately 2.5 percent – mainly by manufacturers in India and the
South East of the region.
Only modest growth in steelmaking is anticipated from the developed
nations of the world over the next five years.
Details of MEPS’ latest predictions for worldwide iron and steel
production are contained in its new report -
World Steel Outlook to 2020 - Quarter 1, 2017
Source: MEPS -
World Steel Outlook
Download a sample copy of the report here
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