UNUnited Nations Economic Commission for Europe

Press Releases 1997

[Index]

WORLD CRUDE STEEL PRODUCTION
DECREASES BY 0.2 PER CENT IN 1996

10 January 1997

The Working Party on Steel of the United Nations Economic Commission for Europe (UN/ECE) has prepared an estimate of world crude steel production in 1996, based on the data provided by member and other countries. World crude steel production reached 750.8 Mt in 1996, a slight decrease of 0.2 per cent or 1.2 Mt compared to 1995 (See table)

This overall decline is attributable mainly to stock reductions and weakening economic activity in the European Union countries and Japan, which continued their adjustment for high levels of inventory from the end of 1995 until around the end of 1996. Central European transition countries and the CIS also experienced declines, registering drops of 9.8 per cent and 3.3 per cent, respectively.

In central Europe as a whole, the economy and industrial output continued their buoyant growth. However, high indirect steel imports and a persistent decline in steel exports led to a drop in steel output. In the CIS, crude steel production declined due to a fall in domestic steel consumption, although steel exports made up for this shortfall to some degree.

The Asian countries, with the exception of Japan, showed dynamic growth in steel production. India, the Republic of Korea and Taiwan Province of China saw output increase markedly, posting rises of 8.5 per cent, 6.1 per cent and 10.1 per cent, respectively, as a result of new capacity installations. In China, according to an announcement by the Ministry of the Metallurgical Industry, crude steel production exceeded the level of 100 Mt for the first time, increasing from 94 Mt in 1995 (+6.8 per cent). Although the construction of large capacity greenfield steelworks was prohibited by the Government, new EAF capacity at the regional level contributed to the new record.

The United States of America also showed marginal gains in steel production from 93.6 Mt to 94.4 Mt. This was due to sustainable economic growth with low inflation and modest interest rates. The start up of a few mini-mills for flat products in 1996 contributed somewhat to the overall increase in crude steel production.

In Latin America, crude steel production registered an increase of 4.3 per cent as a whole, with 14.5 per cent in Argentina, 8.8 per cent in Mexico and 0.8 per cent in Brazil.

The country ranking for global crude steel production in 1996 showed that China became the largest steel producer for the first time, the only country to exceed the 100 Mt level. Japan, slipping from 101.6 Mt in 1995 to 98.8 Mt in 1996, lagged behind China. Third was the United States, then Russia, Germany and the Republic of Korea.