For the second year in a row, India remained as the third largest steelmaker in the world, behind China and Japan, even as it clocked the highest production growth rate among the major steelmakers in 2016.
For the second year in a row, India remained as the third largest steelmaker in the world, behind China and Japan, even as it clocked the highest production growth rate among the major steelmakers in 2016. Clocking 7.4% growth in production over 2015, India’s steel output stood at 95.6 MT in 2016. China produced 808.4 MT and Japan 104.8 MT in 2016. While production in China was up by 1.2%, it fell by 0.3% in Japan. Production in the US also fell by 0.3% to 78.6 MT. Total global production during the year was up by 0.8% to 1,628.5 MT.
India toppled the US in 2015 to become the third largest steelmaker in the world. In 2015, India produced 89 MT steel while the US produced 78.84 MT. However, before that the US was always ahead of Indian production. Even in 2014, the US had produced 88.17 MT steel while India’s production was 87.29 MT.
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With higher production, India’s share in the global steel production also increased to 5.9% in 2016 from 5.5% in the year ago. Japan’s share has come down to 6.4%. The share of the US in the global steel production has also fallen to 4.8% while China’s share rose to 49.6% from 49.4% a year earlier.
As production in India is on the upswing while it has been on the wane in Japan, India is expected to go past the Japanese production in 2017 and thus, become the second largest steelmaker in the world. India’s current steel-producing capacity stands at 122 MT and the government has targeted to take it to 300 MT by 2030-31.
Meanwhile, data compiled by the World Steel Association (WSA) revealed that Asia led the chart in production with 1,125 MT output in 2016 followed by the EU at 162.3 MT, North America at 111 MT, CIS at 102.4 MT, South America at 39.2 MT and the Middle East at 29.4 MT.
Apart from Japan and the US, four other countries among the top ten steel producing nations including Russia, South Korea, Germany and Brazil produced less steel in 2016 than what they had produced in 2015. Production in Ukraine and Turkey, however, remained in the positive terrain during the year.
“The average capacity utilisation in 2016 was 69.3% compared to 69.7% in 2015,” WSA said. With demand and prices of steel have started moving northwards, global production of steel in December, 2016 grew by a whopping 5.5% at 134 MT over the same month a year ago.