Despite Boost from China, World Crude Steel Production Falls 1.2% in 2008
01/23/2009 - World crude steel production reaches an estimated 1329.7 million tonnes in 2008, a 1.2% decrease in production compared to 2007. This total marks the second consecutive year that world steel production totaled more than 1300 million tonnes.
Figures released by the World Steel Association (worldsteel) show that world crude steel production totaled an estimated 1329.7 million tonnes in 2008, a 1.2% decrease in production compared to 2007. This total marks the second consecutive year that world steel production totaled more than 1300 million tonnes.
Steel production declined in almost all regions in 2008, as detailed (see table). In contrast to this overwhelming trend toward contracting production, Asia reported a growth in production of 1.9%, boosted in part by a 2.6% increase in China. According to World Steel Association, world steel production demonstrated an acceleration of negative growth from September through the end of 2008. For December, world crude steel output totaled 84.4 million tonnes, a record 24.3% decrease compared to 2007.
The following countries produced the greatest quantities of crude steel in 2008. The number in parentheses reflects that country’s percentage change in production tonnage compared to 2007:
- China, 502.0 million tonnes (+2.6%)
- Japan, 118.7 million tonnes (–1.2%)
- United States, 91.5 million tonnes (–6.8%)
- Russia, 68.5 million tonnes (–5.4%)
- India, 55.1 million tonnes (+3.7%)
- South Korea, 53.5 million tonnes (+3.8%)
- Germany, 45.8 million tonnes (–5.6%)
- Ukraine, 37.1 million tonnes (–13.4%)
- Brazil, 33.7 million tonnes (–0.2%)
- Italy, 30.5 million tonnes (–3.4%)
Accounting for 749.5 million tonnes or 56.4% of the crude steel produced in 2008, Asiarepresents the world’s largest steel-producing region. Three of the region’s countries hold top-ten positions on the list of largest steel producing countries for 2008: China (502 million tonnes or 37.8% of total crude steel production); Japan (118.7 million tonnes or 8.9% of total crude steel production); and South Korea (53.5 million tonnes or 4.0% of total crude steel production). Asian production in 2008 reflected a 1.9% increase compared to 2007.
By virtue of its production volume, China, whichrepresents more than 38% of total world steel production for 2008, is one of the strongest single influences on the growth or decline in world steel production. In 2008, China produced an estimated 502 million tonnes of steel, making it the first country ever to produce more than 500 million tonnes of steel in one year. China’s steel production, which has more than doubled over the past five years, grew by 2.6% in 2008 as compared to 2007. This growth rate is a dramatic slowdown compared to year-on-year increases of +15.7% in 2007 (vs. 2006), +18.8% in 2006 (vs. 2005), +26.8% in 2005 (vs. 2004), and 26.1% in 2004 (vs. 2003).
Despite China’s slowdown in growth rate for steel production for 2008, world crude steel production would have fallen by 3.3% (vs. 2007) without China’s contribution, rather than the actual 1.2% decrease that was recorded for the 66 countries reporting.
Other BRIC countries also maintained their position on the top-ten steel producing countries list for 2008, with Russia (68.5 million tonnes, or 5.1% of 2008 total production) at the number 4 position despite a 5.4% decrease vs. 2007; India (55.1 million tonnes, or 4.1% of 2008 total production) at the number 5 position with an increase of 3.7% vs. 2007; and Brazil (33.7 million tonnes or 2.5% of 2008 total production) in the number 9 spot despite a slight 0.2% decrease vs. 2007. In 2008, the BRIC share of world production reached 49.6% of total world production, continuing a period of rapid growth that started in 2000, growing from 31% of total in 2001 to 48.2% in 2007.
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World Steel Production
by Region for 2008 in millions of tonnes |
|||
|
|
All 2008
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% change
|
% of Total
|
|
European Union (27)
|
198.6
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-5.3%
|
14.9%
|
|
Other Europe
|
30.9
|
NA
|
2.32%
|
|
C.I.S. (6)
|
114.0
|
-8.1%
|
8.6%
|
|
North America
|
125.4
|
-5.5%
|
9.4%
|
|
South America
|
47.6
|
-1.4%
|
3.6%
|
|
Africa
|
17.0
|
-7.4%
|
1.3%
|
|
Middle East
|
16.0
|
-2.8%
|
1.2%
|
|
Asia
|
749.5
|
+1.9%
|
56.4%
|
|
Oceania
|
8.4
|
-4.1%
|
0.6%
|
|
Total 66 countries
|
1329.7
|
-1.2%
|
100.0%
|
Regional Growth—Steel production in the EU (27) (198.6 million tonnes, or 14.9% of the 2008 total) represented a 5.3% decrease compared to 2007, when this region represented 15.7% of total world production. For this region, the largest contributors were Germany (45.8 million tonnes or 3.5% of the 2008 total), Italy (30.5 million tonnes or 2.3% of the 2008 total), Spain(19.0 million tonnes or 1.4% of total) and France (17.9 million tonnes or 1.3% of total).
Steel production in Other Europe reached 30.9 million tonnes in 2008, representing 2.3% of the 2008 world total. The largest contributors for this region included Turkey (26.4 million tonnes, 2.0% of world total), Serbia (1.7 million tonnes or 0.1% of world total), and Switzerland (1.3 million tonnes or 0.1% of world total).
Steel production in the CIS (114.0 million tonnes, or 8.6% of the 2008 total) represented an 8.1% decrease compared to 2007, when this region represented 9.2% of total world production. Major contributors included number 4 producer Russia (68.5 million tonnes or 5.2% of world total) and number 8, Ukraine (37.1 million tonnes or 2.8% of world total).
In North America, steel production reached 125.4 million tonnes, or 9.4% of total world crude steel production for 2008, reflecting a 5.5% decrease compared to 2007, when this region accounted for 9.8% of the world total. In the U.S. (91.5 million tonnes or 6.9% of 2008 total production), steel production decreased by 6.8% compared to 2007 figures.
In South America, steel production reached 47.6 million tonnes in 2008, representing 3.6% of total crude steel production for 2008. The most significant contributor for the region was number 9 producer Brazil (33.7 million tonnes or 2.5% of total crude steel production). The region’s production reflected a 1.4% decrease in production compared to 2007.
Production in the African region (17.0 million tonnes or 1.3% of total crude steel production) reflected a decrease of 7.4% as compared to 2007.
Steel production in the Middle East (16.0 million tonnes or 1.2% of total crude steel production) reflected a 2.8% decrease as compared to 2007. Growth for crude steel production in Oceania (8.4 million tonnes or 0.6% of total crude steel production) reflected a 4.1% decrease compared to 2007.
