The steel industry is experiencing globalization, with causes including excess production capacity, the highest of which is in China. Worldwide growth in steel demand slowed to 0.6% in 2014, with 0.5% growth in demand predicted by the World Steel Association in 2015. Correspondingly, in 2014, global steel production experienced a slowdown in growth to 1.2%. China, which has been a driver of the growth in steel demand globally, produced 822.7 t of steel in 2014, for growth of 0.9, with a 1.4% drop in production in the first quarter of 2015. Chinese crude steel production in 2015 is forecast to fall 1.2%, with a further 7.5% drop by 2019 following a small increase in 2016. Brazil, Turkey and Ukraine were among the countries with production declines in 2014. Japanese production is expected to increase 1.7% in 2015 and 1.9% in 2016.

Source: EY