Global Steel Production Continues to Grow
Ecoal, Vol 75, August 2011
In June the World Steel Association released the 2011 edition of World Steel in Figures, its annual statistical review of the global steel industry. The report showed an increase in global steel production in 2010 up to 1413.5mmt from 1230.9mmt in 2009.
Once again, China was by far the world's largest steel producer followed by Japan, the United States, India and Russia. The report also highlights the significant shift towards China in global steel markets over the past 10 years. China's share of global production increased from just over 15% in 2000 to more than 44% in 2010, this during a period where global steel production grew by two-thirds. Likewise China's share of steel use (measured by finished steel products) increased from more than 16% to just under 45% of global use.
Coal and steel production
Coking coal is a major component in around two thirds of global steel production and, associated with the growth in steel consumption, there has been increasing demand for this type of coal in recent years. Coking coal trade represents about a quarter of coal traded internationally by volume, but a far more significant proportion by value. The global financial crisis saw a fall of more than 11% in international trade of coking coal in 2009 however new figures due to be released by the International Energy Agency soon are expected to show a recovery in markets for the product.
In 2009 Japan was a major importer of coking coal followed by China, the world's largest steel producer, and India, another one of the world's top five steel producers. The 2009 figures released by the IEA show Australia is by far the world's largest exporter of coking coal. In 2009 its export volume was about 3.5 times that of the United States, the next largest exporter of coking coal.
Outlook for Steel
With world steel production expected to continue to grow the outlook for the coking coal sector will also be positive as the recovery from the global financial crisis continues. World Steel in Figures 2011 includes a telling graphic showing growth in steel production between 1950 and 2010. With average annual growth of more than 5% per annum in the 2000s and continuing increased demand from China, indications are that the near exponential growth in steel production is likely to continue for a while yet.
For further information visit www.worldsteel.org
