LONDON (Scrap Register): Following rapid growth in world steel production to 2014, the situation has changed. MEPS predicts that the high point for global steel-making in that year will not be overtaken until the start of the next decade.
The main reason for this change of fortunes for the steel sector is the expectation that the Chinese mills will maintain their, recently introduced strategy, of reduced investment in new capacity and the elimination of outdated production facilities. Furthermore, steelmakers in the industrialised nations are also expected to restrict output to below the 2014 peak volumes over the next five years.
Steelmaking using the blast furnace route, in 2020, is expected to be significantly below the outturn in the 2013/14 peak years. By contrast, supply from the direct reduced iron process is forecast to rise substantially over the next five years.
Despite minimal growth in output of steel, in China, between 2016 and 2020, total Asian production is projected to increase by approximately 2.5 percent – mainly by manufacturers in India and the South East of the region.
Only modest growth in steel-making is anticipated from the developed nations of the world over the next five years.