According to US based steel information service provider World Steel Dynamics, global steel production is likely to fall 2% at around 1,500 million tonnes in 2012.

Mr Peter Marcus, founder of World Steel Dynamics, told PTI that "Global steel production is going to come down by 2% in 2012."

Mr Marcus said that "China is going to have a very slow production in the first half. But, last six months could probably be better."

He said, however, that there would be a lot of competition on the price front among the steel makers. This might stem from further demand contraction for steel amid slowdown in the global economy. He added that "It is gong to be a tough market, lot of price competition. It is going to be a tough year."

He added, however, that the raw material prices like iron ore and coking coal would also come down in the current year. An over capacity situation will prevail in the Indian market in the current year.

Recording a 6.8% hike over 2010, world's crude steel production hit a record 1,527 million tonnes in 2011. China was the largest contributor (at 45.5%) to the global steel output at 695.5 million tonnes.

(Sourced from PTI)