Domestic Production and Use
The iron and steel industry and ferrous foundries produced goods in 2007 that were valued at about $150 billion. The industry consisted of about 57 companies that produced raw steel at about 116 plants, with combined production capability of about 113 million tons. Indiana accounted for about 24% of total raw steel production, followed by Ohio, 15%, Pennsylvania, 6%, and Michigan, 5%. Pig iron was produced by 8 companies operating integrated steel mills in 18 locations. The distribution of steel shipments was estimated to be warehouses and steel service centers, 21%; construction, 17%; transportation (predominantly for automotive production), 13%; cans and containers, 2%; and other, 47%. About 1,100 ferrous foundries continued to import pig iron into the United States, mainly from Brazil, Russia, and Ukraine.
Events, Trends and Issues
Global raw steelmaking capacity was expected to increase steadily to 1.48 billion metric tons in 2008 from 1.44 billion tons in 2007. Global crude steel production increased 12.8% to 1.32 billion tons in 2007 from 1.17 billion tons in 2006. Production growth is expected to fall to 5.2% in 2008. Global steel production may reach 1.55 billion metric tons in 2015, according to the Boston Consulting Group. Global consumption of finished steel products was projected to increase by 6.8% to 1.20 billion tons in 2007, and by 6.8% in 2008, driven by high demand in Brazil, China, India, and Russia, which together accounted for about 41% of global steel consumption in 2006. Consumption was expected to increase in 2007 and 2008 in the United States by 5.0% and 6.7%, respectively; in the European Union, by 4.0% and 1.4%, respectively; in India by 13.7% and 11.8%, respectively; in Brazil by 15.7% and 5.1%, respectively; in the Commonwealth of Independent States, by 8.9% in 2007 and 2008; and in Canada, Mexico, and the United States combined by 4.0% in 2007 and 2008.
Economic activity in China, which is the world’s leading steel producer, continued to be an important influence on the world economy and steel markets. China contributed about 36% to total global production and accounted for about 64% of production growth recorded during the year. Steel production growth in China may slow to 11% in 2008 from 15% in 2007. China's steel production was 419 million tons in 2006, up from 353 million tons in 2005, and may reach an estimated 482 million tons in 2007. Steel consumption growth should remain strong (11.4% in 2007 and 11.5% in 2008) but should start to decelerate, especially after the Olympics in 2008, which accounted for 4% to 5% of China’s economy in 2006-07. Steel use in China accounted for 35% of the world total in 2007. Raw steelmaking capacity may increase to 1.48 billion tons in 2008, from 1.44 billion tons in 2007 and 1.40 billion tons in 2006. China has been encouraging consolidation in the steelmaking sector to limit overcapacity. China is expected to have a capacity of 538 million tons in 2008. By 2010, China may produce 63 million tons of steel in excess of domestic demand.
Credit: U.S. Geological Survey, Mineral Commodity Summaries
Source: USGS website
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