Global steel production is likely to fall 2 per cent at around 1,500 million tonnes this year, according to US-based steel information service provider World Steel Dynamics.
“Global steel production is going to come down by 2 per cent in 2012,” Mr Peter Marcus, founder of World Steel Dynamics, told PTI.
Recording a 6.8 per cent hike over 2010, world’s crude steel production hit a record 1,527 million tonnes in 2011.
China was the largest contributor (at 45.5 per cent) to the global steel output at 695.5 mt.
“China is going to have a very slow production in the first half. But, last six months could probably be better,” Mr Marcus said hinting that Chinese production could be less in 2012, compared to last year.
He said, however, that there would be a lot of competition on the price front among the steel makers. This might stem from further demand contraction for steel amid slowdown in the global economy.
“It is gong to be a tough market, lot of price competition. It is going to be a tough year,” Mr Marcus said.
He added, however, that the raw material prices such as iron ore and coking coal would also come down in the current year.
An overcapacity situation will prevail in the Indian market in the current year, he said.