Recent figures for 2017 show that world crude steel output is continuing to rise, with tonnage up by 5.3% to 2016. Figures recently released by the World Steel Association WSA reveal world output at 1606.3 million tonnes. China produced a record-breaking 831.73 million tonnes. India achieved a growth of 6.2% to produce 101.371 million tonnes and almost achieved the levels of Japan who produce 104.661 million tonnes
The World Steel Association is one of the largest industry associations. Membership represents approximately 85% of the world’s steel productions, including over 160 steel producers.
The world’s leading scrap importer, Turkey, was the only country among the top 10 producers globally to achieve double-digit percentage growth in its crude steel output in 2017 with production of 37.524 million tonnes.
Crude steel output. Global shares by country
China now accounts for 49.2% of the world’s steel production. Japan is next with 6.2%, India 6.0% and the US is 4.8%. The combined 28 members of the EU constitute 10% of global steel production. The recent growth in the Indian numbers suggest it its poised to become the numbers two producer in the next twelve months, particularly with the growth of their economy.
In late December 2017 ferrous scrap prices improved and showed there was still a strong appetite for steel scrap. Despite difficult weather conditions, when supply is often constrained, Turkish mills showed a healthy demand for quality and consistent scrap supply.
With improved economic conditions throughout the world, improving US conditions and the continued growth of China the outlook for scrap is strong.
Whilst Australia has experienced a sluggish economy throughout 2017 there is some optimism that 2018 will see a return to more positive GDP growth with pleasing signs for our steel industry.
Recycal continues to monitor global trends and to ensure continuous supply of its processed and recycled metals, through its supply chain, to its expanding customer base.