UNUnited Nations Economic Commission for Europe

Press Releases 1998

[Index]

WORLD CRUDE STEEL PRODUCTION REACHES RECORD HIGH

13 January 1998

According to the first estimates of the United Nations Economic Commission for Europe (UN/ECE), world crude steel production increased by 6.6 per cent or 49.6 million tonnes (Mt) to reach a record level of 798.5 Mt in 1997 (the last peak was 784.9 Mt in 1989). This increase is largely due to a rebound in economic growth in the European Union and to a continuous increase in new crude steel-making capacity in the United States of America and in Asia. In the EU, low interest rates and falling inflation strengthened business confidence, and the depreciation of the European currencies against the United States dollar gave rise to a surge in external demand. Total crude steel production within the EU increased by 9.1 per cent to 159.9 Mt.

Production in the United States reached its highest level since 1981, increasing from 94.7 Mt in 1996 to 99.2 Mt in 1997, led by persistent sustained economic development. The start-up of a few mini-mills for flat products in 1997 also contributed to the overall increase in crude steel production, as was the case in 1996, with output in the electric arc furnace (EAF) sector showing an increase, while that of the blast furnace (BF) sector remained flat.

In central Europe as a whole, crude steel production recovered from a decline registered in 1996, reflected by a surge in steel exports. However, in the Russian Federation, crude steel production declined by 2.1 per cent owing to a fall in domestic steel consumption, although an increase in steel exports made up for this shortfall to some degree.

The Asian countries saw dynamic growth in steel production in 1997. Although the economy slowed down in the latter half of 1997 owing to the currency turbulences, new capacity installations spurred output in the Republic of Korea and Taiwan Province of China. In the Republic of Korea, production rose by 8.4 per cent and in Taiwan Province of China by 31.2 per cent. China showed a steady rising trend of crude steel production despite official prohibition of the construction of large capacity greenfield steelworks. Production increased from 100.0 Mt in 1996 to 107.3 Mt in 1997. In Japan, output increased by 6.0 per cent and exceeded the 100 million tonne level for the first time in two years (104.7 Mt) owing to steel exports supported by the devaluation of the Yen.

In Latin America, crude steel production registered an increase of 4.5 per cent as a whole, with a 6.6 per cent increase in Mexico and 3.8 per cent in Brazil.

The country ranking for global crude steel production in 1997 showed that China was the world=s largest steel producer for the second consecutive year. It was followed by Japan, then the United States, the Russian Federation, Germany and the Republic of Korea.

For further information please contact:

Mr. Akio Noguchi
Trade Division
United Nations Economic Commission for Europe (UN/ECE)
Palais des Nations, office 423
CH - 1211 Geneva 10, Switzerland
Tel: +41 22 917 21 49
Fax: +41 22 917 01 78
E-mail: [email protected]