For the first time since 2002, world steel production declined by 1.2% in 2008 on the back of production cuts by almost all major global players like ArcelorMittal and Posco amid a global slowdown in demand. According to the World Steel Association, to which 66 countries report steel production figures, during the calendar year 2008, global steel production stood at 1,329.7 million metric tonne (MT), a fall of 1.2% compared to 2007. However, 2008 is the second consecutive year when world steel production has been over 1,300 MT.
Of the top 10 largest steel producing nations, only China (which tops the list), India (fifth position) and South Korea (sixth) registered increase in production during the year.
Japan, at number two, US (third in list), Russia (fourth), Germany (seventh), Ukraine (eighth), Brazil (ninth) and Italy (10th), all saw a decline in production during the year.
The process of deceleration in steel growth began since September last year and is expected to continue. For instance, global steel output for December 2008 recorded a decrease of 24.3% compared to 2007.
During the year, steel production declined in nearly all major steel producing countries and regions including the EU, North America, South America and the CIS.
However, Asia, particularly China, and the Middle-East showed positive growth in 2008.
China became the first country ever to produce more than 500 MT in one year. China?s crude steel production in 2008 reached 502 MT, an increase of 2.6% over 2007. Production volume in China has more than doubled within five years, from 222 MT in 2002. China?s share of world steel production continued to grow in 2008, with the country producing 38% of world?s total crude steel.
India, with its total production at 55.1 MT, recorded an increase of 3.7% and ranked as the fifth largest steel producing nation. Three years back, India had moved to the fifth position from sixth, wresting South Korea and has maintained the position.
Overall, Asia produced 770 MT of crude steel in 2008, which is 58% of world?s total steel production. This is 1.9% growth over 2007.
