WSA: Global steel production returns to growth

According to the World Steel Association (WSA), in 2016 compared to 2015, production decreased in Japan, the USA, Russia, South Korea, Germany and Brazil. Among the top 10 countries, production increased only in China, Ukraine and Turkey.

Steel production in China increased by 1.2%. China produced 808.4 million tonnes in 2016 and domestic demand continues to be robust. Japan cut output by 0.3% to 105 million tonnes in 2016, while India's third-largest steel producer narrowed the gap with a whopping 7.4% growth to 95.6 million tonnes. India overtook the US in 2015 and is expected to overtake Japan in 2017 or 2018. The Indian government has set a target of 300 million tonnes capacity by 2030 to meet domestic infrastructure demand and middle-class consumption.

The US has benefited from robust demand and the impact of some anti-dumping measures, trends that will have an even greater impact in 2017 if the new administration delivers on its campaign promises. A recent survey of leading analysts suggests that US steel production will increase 4.4% this year.