Have you ever wondered what the steel market is like? Which countries export the most? And those that need the most imports? In this new blog article we want to explain the production data for 2019 and the projection for this year 2020. 

 

2019 steel production

During the beginning of 2019 The countries that had the greatest position in steel production were Turkey, Russia, South Korea, China and Ukraine. These five countries, together, obtained a total of 67% of finished steel exports. 

steel production

It can be said that the steel exports to Europe had a small drop, specifically 2%. The countries responsible were Italy, Germany and the British market. 

Another year, exports to Morocco and the United States fell by approximately 4% and 26%. However, the Algerian and Turkish market they got better.  

As for Spain, in 2019 there was a decrease in exports, and furthermore this decrease was lower if we compare it to neighboring countries. 

 

steel products

Speaking of products, there was a small increase. Specifically, 55% of total steel exports were long products, 29% flat, 15% transformed and 1% semi-products; all of them numbers very similar to the year 2018.

On the other hand, hot-rolled steel sheets were in high demand, with an increase of 28%.

hot rolled steel sheets

 

Steel producing countries

China is the largest steel producer although its economy has not achieved the growth of previous years.In 2018, China was crowned with 48,8% of the total steel consumed worldwide; That is, production increased by 6,6% (928,3 million tons). It should be remembered that they reoriented their production to the domestic market and that provided them with the increase. Furthermore, we cannot forget that Chinese steel-producing companies receive public aid and tax benefits on exports.

IIndia is the second country after China, with a production of 106,5 million tons. It has managed to surpass Japan and become the second largest steel producer in the world, thanks, in large part, to its large workforce and low cost.

 

Market projection in 2020

The first auction that was held for this year 2020 did not seem like a good idea to the sectors that consume electro-intensive energy. Well, this would be a hard blow since 60% of the remuneration received has been reduced. Workers in the steel sector say it is a disadvantage compared to international competitors in terms of energy prices and the negative impact it would have in terms of sustainability. 

steel production 2020

Therefore,  UNESID calls for more competitive prices so that there is equality in all countries, although the negative side is that, as we have commented before, this harms the environment.

 

Steel industry and climate neutrality

As we mentioned in one of our previous articles, The goal of the steel industry is to reduce CO2 emissions as much as possible by 2050. To achieve this, they need public administrations to collaborate to sustain international competitiveness. Luckily, in Spain we are ahead, since a 4% reduction in CO2 emissions per ton of steel has been detected.

 

In a few months we will be able to check if 2020 has met expectations, and if little by little, the goal of the steel industry and climate neutrality is being met.