Steely Resolve Global Steel Production Spikes up China leads the Steel Race

Steel, the harbinger of economic growth and a country’s industrial strength is making a very strong comeback. After a steady decline, global steel production has risen by 3.5% at the end of 2013. The latest trade data also confirms that China, at 48.5%, is the biggest contributor to this steely surge. This spike in steel production is directly reflective of an increment in global demand for steel- thanks to many economies gradually emerging out of the recent financial slump.

The numbers are all good- the total production of steel rose a brilliant 6.3% over the 12-month duration from December 2012, to stand at 129.2 million tonnes. China has emerged as the main player- producing 8.95 times more steel than the USA. China’s overall production hit 779 million tonnes, a spike of 7.5%. Japan increased its overall steel production by 3.1% to stand at 110.6 million tonnes, bagging the title of second biggest steel producer in the world. India wasn’t too behind the party- raising its output by 5.1% to contribute 81.2 million tonnes and be ranked the fourth biggest producer. The global output of steel stood at 1.61 billion tonnes in 2013.

The study also confirms that the average utilisation of steel hiked to 78.1% in 2013, as compared to 76.2% in 2012. Across Asia, the production rose by 6.0% to hit 1.08 billion tonnes, with the exception of South Korea and Russia, where the production fell from earlier statistics. However, across other regions, the production of steel fell. The US, ranked third, produced a total of 87.0 million tonnes, a deficit of 2.0% as compared to 2012. Also, the European Union produced 1.8% less steel as compared to the earlier year. Thus, international steel production is emerging as another scale wherein China is proving herself to be a worthy opponent.