Jan. 23, 2006 — Figures released by the International Iron and Steel Institute show that world crude steel production reached 1,129.4 million tonnes in 2005, a 5.9% increase in production compared to 2004, the first year in which world production passed one billion tonnes of crude steel. China accounted for most of the increase, with crude steel production in rising by 69 million tonnes (+24.6%) to 349.4 million tonnes. Excluding China, the balance of world steel production actually fell slightly (–1.1%) in 2005 compared to 2004.

The following countries produced the greatest quantities of crude steel in 2005. The number in parenthesis reflects that country’s percentage change in production tonnage compared to 2004

• China, 349.4 million tonnes (+24.6%)
• Japan, 112.5 million tonnes (–0.2%)
• United States, 93.9 million tonnes (–5.8%)
• Russia, 66.2 million tonnes (+0.9%)
• South Korea, 47.7 million tonnes (+0.3%)
• Germany, 44.5 million tonnes (–4.0%)
• Ukraine, 38.6 million tonnes (–0.3%)
• India, 38.1 million tonnes (+16.7%)
• Brazil, 31.6 million tonnes (–3.9%)
• Italy, 29.1 million tonnes (+2.2%)

China’s share of the world total rose from 26.3% in 2004 to 30.9% in 2005. During 2005 it became clear that Chinese production was outstripping demand, and the market was over-supplied. The Chinese government intends to close inefficient and uneconomic capacities, and concentrate a greater share of output under the control of several large companies.

Regional Growth — Production increases varied widely across the region in 2005. Crude steel prodution in the Asian region reached 566.1 million tonnes in 2005, an increase of 14.9% compared to 2004. In Japan, weaker steel demand from the public sector was compensated by improving private sector demand. Crude steel production of 112.5 million tonnes in 2005 was virtually unchanged from the previous year’s level. India’s strong economic growth provided the backdrop for a 16.7% (5.5 million tonnes) growth in the country’s steel output, to a total of 38.1 million tonnes in 2005. Total production for the region represented more than 51% of total crude steel production for 2005.

Europe was the second-largest steel-producing region in 2005, contributing 186.4 million tonnes (16.8% of the 2005 total) from the European Union (25), reflecting a 3.6% decrease in production compared to 2004. The decrease is attributed in part to cutbacks by some producers in response to high inventories. Production in the CIS held steady at 112.9 million tonnes, representing 2.6% of total crude steel production for 2005.

A consolidated North American steel industry continued to reduce production through 2005, while the high inventories built up in the marketplace during 2004 were liquidated. The region’s output fell by 7 million tonnes (5.3%) to 127 million tonnes or 11.5% of total crude steel production for 2005.

In South America, total output for the year was down 1.2% at 45.3 million tonnes, representing 4.1% of total crude steel production for 2005. Inventory liquidation also affected Brazilian output (down 3.9% to 31.6 million tonnes). Argentina reported growth (+4.8%) as did Venezuela (estimated at 8.4%).

Production in the African region grew 5.7% compared to 2004, reaching 17.4 million tonnes in 2005, or 1.6% of total crude steel production for 2005. Double digit growth rates in Egypt and Libya helped to boost production for the region.

Rising output in Iran (+8.3%) and Saudi Arabia (+7.3%) contributed to the 7.3% growth rate for the Middle East, where production reached 14.7 million tonnes, or 1.3% of total crude steel production for 2005.

Crude steel production grew to 8.6 million tonnes in 2005 for Oceania, reflecting a 3.7% increase compared to 2004. The region accounted for 0.8% of total crude steel production for 2005.