POSCO knocked out 4th place in world steel production

POSCO, the largest steel producer in South Korea, regained its status as the world's fourth largest steel producer, according to the World Steel Association. The Pohang-based company achieved 41.9 million tonnes of steel in 2015 and was ranked fourth in the world in terms of steel output, moving up one notch in the rankings.

POSCO was in fourth place in terms of production in 2011, but remained in fifth place for three years until last year. POSCO's production has changed little from the 41.5 million tonnes recorded in 2014. The shift in the ranking stems from a sharp decline in production from China's Baosteel Group, which was ranked fourth in the world in 2014 from 43.3 million tonnes, but fell to 34.9 million tonnes last year.

South Korea's second steelmaker, Hyundai Steel, ranks 13th with 20 million tonnes of crude steel. ArcelorMittal, headquartered in Luxembourg, retained first place with 97.1 million tonnes, followed by China's Hebei Iron & Steel Group with 47.7 million tonnes.

“Chinese metallurgists have cut production since the end of last year,” said Chun Yong-mi, a senior fellow at the Korea Institute of Industrial Economics and Trade. "Especially the Baosteel Group, which is heavily dependent on the Chinese government, has cut production amid the authorities' policy to combat oversupply."

In fact, global crude steel production plunged 2.9 percent to 1.62 billion tonnes in 2015 from 1.67 billion tonnes a year earlier. China accounts for about half of world production with a total volume of 830 million tonnes. Japan and India follow China with 150.2 million tons and 89.4 million tons, respectively. South Korea ranks sixth with 69.7 million tonnes. The fourth and fifth places are occupied by the United States and Russia with 65.71 million tons and 58.91 million tons, respectively.

"South Korea saw a decline in steel demand with a downturn in the construction and manufacturing sectors," Chung said. "This trend is expected to continue throughout this year amid weaker market demand from China."