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World Crude Steel Production Reaches All-Time-High in 2007

01/28/2008 - World crude steel production reaches an estimated 1343.5 million tonnes in 2007, a 7.5% increase in production compared to 2006. The total marks the fifth consecutive year that world steel production grew by more than 7%.

Figures released by the International Iron and Steel Institute (IISI) show that world crude steel production totaled an estimated 1343.5 million tonnes in 2007, a 7.5% increase in production compared to 2006. This total—the highest level of crude steel output in history—marks the fifth consecutive year that world steel production grew by more than 7%.
 
The following countries produced the greatest quantities of crude steel in 2007. The number in parentheses reflects that country’s percentage change in production tonnage compared to 2006:
 
  • China, 489.0 million tonnes (+15.7%)
  • Japan, 120.2 million tonnes (+3.4%)
  • United States, 97.2 million tonnes (–1.4%)
  • Russia, 72.2 million tonnes (+2.0%)
  • India, 53.1 million tonnes (+7.3%)
  • South Korea, 51.4 million tonnes (+6.0%)
  • Germany, 48.5 million tonnes (+2.8%)
  • Ukraine, 42.8 million tonnes (+4.7%)
  • Brazil, 33.8 million tonnes (+9.3%)
  • Italy, 32.0 million tonnes (+1.2%)
Although the full-year totals are high, the growth rate has begun to slow slightly following a peak in year-on-year growth at the end of the first quarter. According to IISI, the slowdown occurred in most of the major producing countries and regions, including China, EU, CIS, and the U.S. The Middle East and South American regions were notable exceptions to this trend.
 
Accounting for 754.3 million tonnes or 56.1% of the crude steel produced in 2007, Asia represents the world’s largest steel producing region. Two of the region’s countries hold the first and second positions for the largest steel producing countries for 2007: China (489 million tonnes or 36.4% of total crude steel production) and Japan (120.2 million tonnes or 8.9% of total crude steel production). Asian production in 2007 reflected an 11.7% increase compared to 2006.
 
By virtue of its production volume, China is one of the strongest single influences on the growth in world steel production. China’s 2007 production, a 15.7% increase compared to 2006, was also the largest growth rate among the world’s top-ten steel-producing countries in 2007. This growth rate is, however, a slowdown compared to the 18.8% increase in 2006, and hefty increases of 26.8% in 2005 and 26.1% in 2004.
 
Despite China’s slight slowdown in growth rate for steel production for 2007, world crude steel production would have grown by only 3.3% without China’s contribution, rather than the actual 7.5% growth that was recorded for the 67 countries reporting.
 
Other BRIC countries also maintained relatively high growth, with India (53.1 million tonnes, or 4.0% of 2007 total production) recording an increase of 7.3%, and Brazil (33.8 million tonnes or 2.5% of 2007 total production) recording an increase of 9.3%. In Russia (72.2 million tonnes or 5.4% of total), production growth was flat from the end of the second quarter leading to an annual growth figure of 2%.
 
According to IISI, the BRIC share of world production has been growing rapidly since 2000, growing from 31% of total in 2001 to 48.2% in 2007.
World Steel Production
by Region for 2007
in millions of tonnes
 
All
2007
% change
% of Total
European Union (25)
210.3
+1.7%
15.7%
C.I.S. (6)
124.0
+3.4%
9.2%
North America
132.1
+0.4%
9.8%
South America
48.3
6.5%
3.6%
Africa
18.8
+0.1%
1.4%
Middle East
16.4
+6.7%
1.2%
Asia
754.3
+11.7%
56.1%
Oceania
8.7
+0.6%
0.7%
Total 61 countries
1343.5
+7.5%
100.0%
 
 
Regional Growth—Steel production in the EU (27) (210.3 million tonnes, or 15.7% of the 2007 total) from the second quarter remained stable, with a 1.7% growth over 2006. For this region, the largest contributors were Germany (48.5 million tonnes or 3.6% of the 2007 total), Italy (32.0 million tonnes or 2.4% of the 2007 total), France (19.3 million tonnes or 1.4%) and Spain(19.1 million tonnes or 1.4%).
 
In North America, steel production reached 132.1 million tonnes, or 9.8% of total world crude steel production for 2007. In the U.S. (97.2 million tonnes or 7.2% of 2007 total production), steel production showed negative growth in the first three quarters but showed a turnaround in the fourth quarter with three consecutive months of growth. Total crude steel production for the U.S. reflected a 1.4% reduction compared to 2006 figures.
 
In South America, steel production reached 48.3 million tonnes in 2007, representing 3.6% of total crude steel production for 2007. The most significant contributors for the region included Brazil (33.8 million tonnes or 2.5% of total crude steel production) and Venezuela (5.0 million tonnes or 0.4% of total crude steel production). The region’s production reflected a 6.5% increase in production compared to 2006.
 
Production in the African region (18.8 million tonnes or 1.4% of total crude steel production) was relatively flat, at just 0.1% higher than in 2006.
 
Steel production in the Middle East (16.4 million tonnes or 1.2% of total crude steel production) was 6.7% larger compared to 2006. Growth for crude steel production in Oceania (8.7 million tonnes or 0.65% of total crude steel production) was relatively flat in 2007, at just 0.6%.