Global steel production capacity to increase during 2018-2020

Global steel production capacity is expected to increase by almost 52 million tonnes during 2018-2020, as noted in the Organization for Economic Co-operation and Development report in its report “Recent Developments in Steel Production”.

Currently, 39 million tons of additional capacity is in the planning stage and the potential can be connected to the grid by 2020.

The Middle East is expected to experience significant growth over this period, with 31.50 million tonnes of capacity currently scheduled to be completed by 2020. The region has expanded significantly from 2007 to the present, with total production increasing from 24 million tonnes to 63.70 million tonnes in 2017.

Iran is the main driver for expanding steel production in the Middle East. The total capacity is expected to be 52.80 Mt by 2020, up from 28.2 Mt in 2016.

Asia also has the potential for 19 million tonnes of capacity expansions that are planned, which could bring the total to nearly 24 million tonnes between 2018-2020. With capacity expansions expected in India, there is speculation that it could become the world's second largest steel producer in the next few years.

There are currently 5.90 million tonnes of expansion in Africa, with the bulk of this investment concentrated in North African countries. These include a new 2.3 million EAF plant in Togiali, Algeria, which is expected to go online in 2018.

The CIS, Latin America and the countries of the North American Free Trade Agreement all have the potential for increases of 2.1 million tons, 1.6 million tons and 0.6 million tons, respectively.

Global steelmaking capacity is currently in surplus, with a capacity gap of 561 million tonnes, and in industry, several countries, including China, have reduced their unused capacity.