2005 (full year) Crude Steel Production

World crude steel production increased by 5.9% in 2005, to reach a total of 1,129.4 million metric tons (mmt), according to the International Iron and Steel Institute. China accounted for most of the increase. Crude steel production in China rose by 69 mmt (or 24.6%) to 349.4 mmt.
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.

In Japan, weaker steel demand from the public sector was compensated by improving private sector demand. Crude steel production of 112.5 mmt 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 mmt) growth in the country’s steel output. Indian production totalled 38.1 mmt in 2005. Asia’s total output rose by 14.8% to 583.8 million tons, more than half of the world total.

A consolidated North American steel industry was able to reduce production in line with demand through 2005, while the high inventories built-up in the marketplace during 2004 were liquidated. The region’s output fell by 7 mmt or 5.3%, to 127 mmt.

Inventory liquidation also affected Brazilian output (down 3.9% at 31.6 mmt). Despite growth in Argentina (up 4.8%) and Venezuela (estimated at 8.4%) South America’s total output for the year was down 1.2% at 45.3 mmt.

The European market was also beset by high inventories. Cutbacks by some producers reduced output in the EU (25) by 3.6%, to 186.5 mmt. Production in the CIS held steady at 112.9 mmt.

Double digit growth rates in Egypt and Libya took Africa’s total output to 17.9%, a 7.1% increase. Rising output in Iran (up 8.3%) and Saudi Arabia (7.3%) provided a similar growth rate for the Middle East.

December 2005 production
Total world crude steel production for December 2005 was 96.0 mmt, a rise of 3.8% compared to December 2004. Chinese production was 32.0 mmt for the month, a rise of 16.2% compared to December 2004.

Source: NewsDesk

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