Global crude steel production fell 2.8 percent previous year, marking the first annual decline since 2009, as producers succumbed to pressure from waning demand and tumbling prices.
China’s crude steel production in 2015 reached 803.8 million t, down by 2.3% on 2014.
“China will cut crude steel production capacity by 100 to 150 million tons”, according to a statement issued on Sunday after an executive meeting of the State Council chaired by Premier Li on Friday. Recently, the US Department of Commerce increased duties on imports from India by 6.9%, while the department imposed duties of up to 256% on imports from China, 3.5% on Korea and 3.1% on Italian imports.
Last October, the WSA had initially forecast a 1.7 percent rise in world demand for 2015, followed by a 0.7 percent rise this year.
According to AISI, production was 1,807,000 net tons in the week ended January 16, 2015 while the capability utilization then was 76.4 percent.
North American production came in 8.6 percent lower at 110.7 Mt, with fourth largest producer, the United States, seeing production dropping 10.5 percent to 78.9 Mt. Spain produced 14.9 million t of crude steel in 2015, an increase of 4.4% compared to 2014. The AISI production report “AIS 7”, published monthly and available by subscription, provides a more detailed summary of steel production based on data supplied by companies representing over three quarters of USA production capacity.
Brazilian steelmakers produced 33.2 million metric tons during 2015, down by 1.9% compared to the 2014 result.
As per Steel Ministry, India is the only country among major steel producing countries that recorded a positive trend in steel production and consumption past year.
The rise of China’s steel market share comes as competitors accuse Chinese steel firms of dumping their production onto world markets at prices below cost.
A steel industry veteran Seshagiri Rao, group CFO at JSW Steel, explained: “As on date, the country’s installed steelmaking capacity is 120 MT. With 89.6 MT of production, the capacity utilization was estimated at only around 74.6%”.
Three million employees face layoffs if the steel, coal, cement, aluminum and glass industries cut production by 30 per cent over two to three years, China International Capital said this month.