Global crude steel production was down 2.8 percent in 2015, the first fall in 16 years, as a lower prices and a slowing China impacted the industry negatively.
Figures released by the World Steel Association showed production fell to 1.623 billion tonnes, with China’s output dropping 2.3 percent to 803.8 million tonnes. “Crude steel production decreased in all regions except Oceania in 2015,” the global steel body said.
Prices have been in a free fall, dropping nearly 40 percent last year, as the China – the biggest producer and consumer of steel – saw demand drop as its economy dropped pace and forced a global glut. Despite that, Worldsteel said,
China’s share of world crude steel production increased from 49.3 percent in 2014 to 49.5 percent in 2015. Worldsteel said global spare capacity increased with average capacity utilisation in 2015 at 69.7 percent compared to 73.4 percent in the previous year. China alone is widely believed by industry experts to be sitting on a spare capacity of 300-400 million tonnes, roughly half of the global number. The government has said it will reduce the capacity by up to $150 million tonnes. It hasn’t given a timeline.