Without these 8 countries that produce the most steel in the world, society may not be what it is today as modern infrastructure depends heavily on this alloy of carbon.
Steel is employed for the manufacture of so many products, that it’s impossible to list them all down. Apart from being used in common tools and household items like cooking utensils and furniture, steel plays a huge role in skyscrapers and buildings, which require a basic steel shell to be able to hold their weight. A country that produces a lot of steel is automatically considered a more developed one. It’s no wonder that the 8 Countries that Produce the Most Refugees in the World and are drowning in war and instability do not make an appearance on our list.
One would think that the innumerable applications of steel would be enough to sustain the industry for decades to come. The truth, however, alarms many. The demand for steel is falling faster than anyone could anticipate. In 2015, the situation was such that the price of the metal went down to $170 per ton from $400 per ton. Following this situation, countries have begun to limit their production even though their capacity allowed them to keep dishing out steel in large numbers.
Omegafoto/Shutterstock.com
Companies whose only concern used to be trying to limit their carbon emissions, are now faced with more serious issues relating to their businesses. Various companies have even suffered losses, struggling to deal with the lessening demand and the low prices. Many industrialists have blamed China for its dumping of steel at extremely cheap rates. Although the present circumstances paint a dark picture for steel producers, the World Steel Association is still convinced that the industry will grow in the years to come, a statement that businessmen are holding on to for hope. This statement also bodes well for the following countries that produce the most steel in the world, a list we created with the help of a report issued by the World Steel Association, titled World Steel in Figures 2016.
8. Brazil
Production: 33.3 million tonnes
The installed capacity in Brazil for crude steel production is a little less than 50 million tonnes. Compared to the production figure, it is quite clear that the industry has the potential to grow but like other nations, the lessening demand has Brazil cutting down on production. Since 2011, when the corresponding figure was 35.2 million tonnes, production has been decreasing at a slow and steady rate to the number we see today.
Vadim Ratnikov/Shutterstock.com
7. Germany
Production: 42.7 million tonnes
Up next on our list of countries that produce the most steel in the world is Germany which produces the most steel out of all the countries forming part of the European Union. The German industry is often compared with the UK industry, being praised for its long-term strategy. However, it is also criticized for dealing with the issues in the steel industry by placing the adverse impact on the shoulders of the working class, making the rich richer and the poor poorer.
Joseph Sohm / Shutterstock.com
6. South Korea
Production: 69.7 million tonnes
The exports of South Korean steel industry amounted to 31.2 million tonnes in 2015, which is a huge percentage of its production. This may be due to the fact that it is charging a much lower price to fellow nations than it is to the local market. This strategy has been adopted to increase demand for South Korean steel and rival steel sold by China at abominably low rates.
Andy.M/Shutterstock.com
5. Russia
Production: 70.9 million tonnes
With steel companies in other countries worrying about the situation currently prevailing in the industry, suffering losses due to plummeting prices and laying off employees, Russia, the number 5 on our list of countries that produce the most steel in the world, is a country that is making profits from steel. The cost of production in Russia is extremely low compared to other countries, a feat that is providing considerable benefit to this huge country.
Photology1971/Shutterstock.com
4. The United States
Production: 78.8 million tonnes
Since the last two years, the steel industry in the United States of America has been experiencing a decline but with Donald Trump’s promise of investing as much as $1 trillion dollars in the infrastructure of the country, steel producing companies have breathed a sigh of relief and experts have predicted that production is expected to increase by 4.4% next year.
3. India
Production: 89.4 million tonnes
The company that accounts for 10% of the steel production in the world, and hence is the number 1 company in this regard, originated in India. ArcelorMittal was formed with the takeover of Arcelor by Mittal Steel, a company that formed in India in 1989, and has now flourished into a multinational presence. This fact emphasizes how significant steel production in India is.
While it is number 3 on our list of countries that produce the most steel in the world, India fails to be counted as a top exporter of the product, unable to cement a spot even in the top 15 exporters of steel. Its exports amounted to a mere 7.6 million tonnes in 2015.
rob3rt82/shutterstock.com
2. Japan
Production: 105.2 million tonnes
We are continuing our list of countries that produce the most steel in the world with Japan, which exported 40.8 million tonnes of the steel it produced in 2015 and utilized the rest for use inside the country. This fact is not at all surprising considering that Japan is a country which is on top of the game when it comes to technology, an industry that requires steel in its products. Furthermore, modern manufacturing processes of steel require top notch and advanced machines, something which Japan certainly does not lack.
1. China
Production: 803.8 million tonnes
Steel is yet another product that China excels in. It accounts for approximately 50% of the total steel production in the world and hence is number one on our list of 8 countries that produce the most steel in the world. China’s steel production blew up into the gargantuan industry it is today in the last 15 years since the nation needed the alloy not only for its own use but also to keep its exports growing at a steady rate. However, the growing dilemma of excess capacity in China’s steel industry is a source of distress for other countries. The world is of the view that it is producing much more steel that the existing demand and most of this excess capacity is due to the fact that China refuses to reduce its production, in order to keep its GDP growing at the desired rate and avoid layoffs. Furthermore, China has been charging such low rates for its steel that countries like the UK have been rendered unable to compete, causing indignation in the industry. China has vowed to decrease its production to 150 million by 2020, but only time will tell if it will hold true to this statement.
