October 12, 2008

World crude steel output in 2007 up by 7.5% to 1.343 billion

The International Iron and Steel Institute announced that world crude steel output reached 1.343 billion tonnes for the year 2007 up by 7.5% YoY as compared to 2006.

While the overall output remained high, 2007 has seen a small slowdown in the growth rate, YoY growth peaking at the end of the first quarter. This slowdown in growth was seen in nearly all the major producing countries and regions including China, EU, CIS and the US. The exception was in the Middle East where production growth accelerated during the second half of the year.

China’s steel production in 2007 reached 489 million tonnes, a 15.7% increase on 2006. This represents a growth reduction from the 18.8% achieved in 2006, 26.8% in 2005 and 26.1% in 2004. The slowdown in 2007 was most apparent during the last quarter, with an 8.6% growth rate. However, China remains the driving force behind the still strong world production figures. Without China world crude steel production would have only grown at 3.3%.

Other BRIC countries also maintained relatively high growth, with India and Brazil recording 7.3% and 9.3% increases respectively. In Russia production growth was flat from the end of the second quarter leading to an annual growth figure of 2%. The BRIC share of world production has been growing rapidly since 2000. It has grown from 31% of total in 2001 to 48.2% in 2007.

Steel production in the EU (27) from the second quarter remained stable, with year-end figures of 210.3 million tonnes, a 1.7% growth over 2006.

In the US 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 US was 97.2 million tonnes, a 1.4% reduction on 2006 figures.

Rank	Country	2007	2006	Change
1	China	489.0	422.7	15.7
2	Japan	120.2	116.2	3.4
3	United States	97.2	98.6	-1.4
4	Russia	72.2	70.8	2.0
5	India	53.1	49.5	7.3
6	South Korea	51.4	48.5	6.0
7	Germany	48.5	47.2	2.8
8	Ukraine	42.8	40.9	4.7
9	Brazil	33.8	30.9	9.3
10	Italy	32.0	31.6	1.2

Readers are requested to note that
1. IISI monthly statistics are compiled using data submitted by the 67 reporting countries. However, the end of year annual figures include estimates for non reporting countries. The totals provided in the end of year annual figures will be greater than the cumulative monthly figures.
2. China’s figures for December are estimates supplied by the China Iron and Steel Association and will be confirmed at the end of this month.

The International Iron and Steel Institute is the largest steel industry associations in the world. IISI represents approximately 180 steel producers, including 19 of the world's 20 largest steel companies, national and regional steel industry associations, and steel research institutes. IISI members produce around 75% of the world's steel, excluding China and the growing membership in China now accounts for over 20% of Chinese production.