China Dominates Global Steel Industry

By ZeroHedge - May 22, 2023

Steel is a critical component of modern industry and economy, essential for the construction of buildings, automobiles, and many other appliances and infrastructure used in our daily lives.

Visual Capitalist's Niccolo Conte create this infographic, using data from the World Steel Association, to visualize the world’s top steel-producing countries, and highlights China’s ascent to the top, as it now makes up more than half of the world’s steel production.

The State of Global Steel Production

Global steel production in 2022 reached 1,878 million tonnes, barely surpassing the pre-pandemic production of 1,875 million tonnes in 2019.

Country	2022 Production (in million tonnes)	Annual Production Change	Global Share
???????? China	1013.0	-2.0%	53.9%
???????? India	124.8	5.3%	6.6%
???????? Japan	89.2	-7.9%	4.8%
???????? United States	80.5	-6.5%	4.3%
???????? Russia	71.5	-5.8%	3.8%
???????? South Korea	65.9	-6.9%	3.5%
???????? Germany	36.8	-8.8%	2.0%
???????? Türkiye	35.1	-15.0%	1.9%
???????? Brazil	34.0	-6.5%	1.8%
???????? Iran	30.6	6.8%	1.6%
???????? Italy	21.6	-13.0%	1.1%
???????? Taiwan	20.7	-12.1%	1.1%
???????? Vietnam	20.0	-15.0%	1.1%
???????? Mexico	18.2	-1.9%	1.0%
???????? Indonesia	15.6	8.3%	0.8%
Rest of World	201.0	-11.2%	10.7%
World Total	1878.5	-3.9%	100.0%

2022’s steel production marked a significant reduction compared to the post-pandemic rebound of 1,960 million tonnes in 2021, with a year-over-year decline of 4.2%–the largest drop since 2009, and prior to that, 1991.

This decline was spread across many of the world’s top steel producers, with only three of the top fifteen countries, India, Iran, and Indonesia, increasing their yearly production. Most of the other top steel-producing countries saw annual production declines of more than 5%, with Turkey, Italy, Taiwan, and Vietnam’s production all declining by double digits.

Even the world’s top steel-producing nation, China, experienced a modest 2% decline, which due to the country’s large production amounted to a decline of 19.8 million tonnes, more than many other nations produce in a year.

Despite India, the world’s second-largest steel producer, increasing its production by 5.3%, the country’s output still amounts to just over one-tenth of the steel produced by China.

China’s Meteoric Rise in Steel Production

Although China dominates the world’s steel production with more than a 54% share today, this hasn’t always been the case.

In 1967, the World Steel Association’s first recorded year of steel production figures, China only produced an estimated 14 million tonnes, making up barely 3% of global output. At that time, the U.S. and the USSR were competing as the world’s top steel producers at 115 and 102 million tonnes respectively, followed by Japan at 62 million tonnes.

Almost three decades later in 1996, China had successively overtaken Russia, the U.S., and Japan to become the top steel-producing nation with 101 million tonnes of steel produced that year.

The early 2000s marked a period of rapid growth for China, with consistent double-digit percentage increases in steel production each year.

The Recent Decline in China’s Steel Production

Since the early 2000s, China’s average annual growth in steel production has slowed to 3.4% over the last decade (2013-2022), a considerable decline compared to the previous decade’s (2003-2012) 15.2% average annual growth rate.

The past couple of years have seen China’s steel production decline, with 2021 and 2022 marking the first time the country’s production fell for two consecutive years in a row.

While it’s unlikely China will relinquish its position as the top steel-producing nation anytime soon, it remains to be seen whether this recent decline marks the beginning of a new trend or just a brief deviation from the country’s consistent production growth          

By Zerohedge.com