The global demand for steel has fallen sharply except China. Due to the crash in residential and commercial real estate, demand for steel is low. Another reason is the slump in automobile production in developed world. China continues to show strong demand for steel due to the many public infrastructure projects under construction there. However China also is a major producer of steel as well. Overall production capacity continues to rise while demand shows no sign of revival.
This post contains a few interesting charts from a presentation at the OECD 66th Steel Committee Meeting, Paris, in JuneÂ this year and PowerPoint decks presented by participants from Latin America, Japan, North America, China and the EU.
Global Steel Output Growth
Global Steel Demand
Steel Consumption – U.S. Vs. China
Global Steel Production
Source:Â OECD – Trends in the global steel market, 66thSteel Committee Meeting, Paris, June 2009
The consumption of steel in China isÂ strong which confirms the infrastructure spending by the economic stimulus program. Despite the U.S. stimulus allocating a sizable portion to infrastructure improvement it has not translated into higher demand for steel.