Fig.

4 India
Fig.1- Global
Total Finished
Crude Steel
SteelProduction
(alloy + non-alloy)
and Use(Million
Tonnes)
100 (Million Tonnes)
2,000 87.7
81.7 1,649 1,665
1,537 75.7 1,559 1,537.3
80 1,433
1,380.268.6 1,411.8 71.0 1,439.373.5 1,528.4
74.1
1,500 66.4 65.2
60.659.3
60 55.3
1,000
40
500
20 Fig.3
Fig.5 India - Steel Fig.2
Exports Major
Indiaand Steel-producing
- Crude
Imports
Others Steel (Million Countries
Tonnes)
9 Sector
(Million Tonnes)
120 88%Briefing
0 88% – Steel
7.9
17.2%
101
90%
8 7.4 2010Ukraine
2010 2011
2011 2012972012 2013 2013 2014 Apr-Dec
2014
6.7 100 6.9 91 88%
7 6.5 81.7
75 1.6%
80 6.0
74.3 78.4 76 2015*
86%
Brazil
5.4 5.5
6 Industry
80
4.6 Overview
Crude
65.8 Steel 70.7
Production
Production
Turkey
2.0%
Steel
RealUse
Consumption
(finished steel products)
62.4 84%
5 Germany 82% 4.1 82%
4 3.3 3.660 2.0% 81% 81%China 82%
2.6%
Russia 49.4%
3 40 Global
4.3% 80%
2
1
20
South 78%  The global crude steel production stood at 1,665 Million Tonnes
0 0 Korea
India 76%(December 2014), marking a 1% rise as compared to 2013 (Fig.1).
2010 2011 2012
2010 2011
2013
4.3% 2012
2014 Apr-Dec
2013 2014 Apr-Dec
5.2%
US 5.3% 2015* 2015*  Crude steel production reached 1,345 Million Tonnes during
Japan
Import Capacity ExportProduction Capacity Utilization (%)
6.0% January-October 2015.
 The global steel use (finished steel products) stood at 1,537.3 Million Tonnes, in December 2014 (Fig.1), with China accounting
for almost 46.2% of the total produce.
 Building and construction sector is the largest consumer of steel, utilising about 50% of the steel produced, followed by
machinery (16%), automotive sector (13%) and metal products (11%).

Challenges facing the Global industry

 The global steel industry has reached the end of a major growth cycle, which was based on the rapid economic development of
China.
 During 2004-2014, the global idle capacity increased from 17% in 2004 to approximately 23% in 2014. The rising share of idle
capacity continues to pose a major threat to the global steel industry.
 With no significant improvement in the economic indicators, the major steel producing countries are facing over capacity due to
an environment of declining steel demand, which has led to a drop in price.
 The declining profitability of a sector that is highly capital intensive as well as the rising debt levels have significantly weakened
the credit profile of the industry globally. Steelmakers across the globe are increasingly finding it difficult to support the prices of
finished steel products.
– Global steel prices are at their lowest since 2003, and steadily falling. This has posed challenges for global giants, such as
US Steel and Posco, whose profits have been under pressure for the past one year.
– US Steel’s Net loss has amounted to US$509 million in the nine months ended in September 2015, as compared to US$173
million during the same period in 2014.
– Further, Posco also reported a net loss of KRW658 billion (US$0.6 billion) in Q3 2015 as compared to a net profit of
KRW117 billion (US$0.1 billion) in Q2 2015.
 In 2014, China accounted for 49.4% of global crude steel production, followed by Japan, US and India (Fig.2).
 Over the last decade (2004-14), China has been the sole driver of global steel demand. However, the significantly reduced
demand from the real estate and infrastructure sector has led to a decline in Chinese steel consumption for the first time ever in
last two decades.