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Engineering Industry Reports and Surveys
News Release from: MEPS (International)
Edited by the Engineeringtalk Editorial
Team on 16 February 2006
Crude steel production set to rise, says
report
Global crude steel production predicted to climb to 1175 million tonnes this year, more than 4% up on the outturn in 2005.
MEPS has forecast global crude steel production climbing to 1175 million tonnes this year, more than 4% up on the outturn in 2005 Blast furnace iron making is predicted to reach 817 million tonnes in 2006
This represents a rise of around 4.5% over the year earlier figure.
Most of the gain in steel manufacturing will come again from producers on the Asian continent.
Chinese steel mills are expected to contribute more than 80% of the improvement.
Oversupply will be a feature of the market for at least the first half of this year.
The market watcher envisages only modest increases in steel output from the industrialised nations.
The 2006 gain in production will be much lower than the figures recorded in recent years.
Curbs in steel making will continue in the EU, North America and Japan.
The Asian mills, particularly those in China and India, are expected to slow their rate of expansion to nearer 10%.
An increase in the volume of steel trade is anticipated.
Excess supply in many Asian countries is likely to be exported to the industrialised nations in Europe and North America.
Steel output in 2005, across the EU-25 member states, was near to 186 million tonnes - 3.8% down on the year earlier result.
The final figure for the last quarter at around 47 million tonnes was higher than MEPS anticipated.
The discrepancy was the result of several factors.
Crude steel making in the other European countries in 2005 was about 31.9 million tonnes.
This is a small rise on the 2004 figure and in line with the previous forecast.
It predicts steel output rising in 2006 by 600,000 tonnes (almost 2%).
Gains are anticipated in Turkey and Bosnia as new capacity comes on stream.
Only a slight improvement in blast furnace iron supply is expected compared with the previous year.
Total output of steel in the former USSR was marginally up in 2005 compared with the previous 12 months.
This year, the figure is expected to be 1.3% higher at 114.35 million tonnes.
Blast furnace iron making in 2005 was down by 3.5 million tonnes as producers turned to electric melting for many new investments and steel making efficiency improved.
In 2006, a slight improvement is anticipated.
Crude steel output in the Nafta region in 2005 fell 4.5% to 127 million tonnes.
Blast furnace iron production dropped 10% to 48.5 million tonnes.
In 2006, MEPS sees little change in overall iron and steel making in the region, despite growing economic activity in the future.
Iron and steel making will increase again in the US but more closures are anticipated.
Crude steel production in the African region rose by one million tonnes in 2005 - mainly as a result of higher output in Egypt.
A more modest rise is anticipated during 2006.
Middle Eastern production of steel went up by one million tonnes in 2005 compared with the previous year.
MEPS believes that 2006 could prove to be one of further significant growth.
Asian crude steel output escalated by almost 18% in 2005, mainly as a result of massive expansion in China.
It forecasts another significant increase in 2006 but not at the same rate as in the previous year.
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