Steel production in 2014 is expected to witness quite a turbulent stage from throughout the world. Indian Steel industry might grow with increase in Iron ore production, while Chinese economic conditions are expected to curb Steel production from the country.
India’s demand for Steel is expected to rise by about 3-5 per cent in 2014 owing to growth in GDP of about 5.6 per cent in FY15. Steel consumption of the country during Apr-Dec period of 2013 is noted to be of about 0.5 per cent to 53.8 MnT. India has an overall installed production capacity of 95 MnT and is expected to add about 13-14 MnT in 2014.
According to World Steel Association (WSA), India’s Steel demand is estimated to rise by about 5.6 per cent annually in 2014. Increased supply of Iron ore in the country will also help increase Steel production in FY15.
Chinese Steel output, which amounts to about half of the total world’s Steel production, is predicted to be weaker in 2014 owing to the prevailing economic conditions in the country. It is expected to rise by 4 per cent in 2014 as compared to 6 per cent growth recorded in 2013. The overall output of the country is expected to reach up to 810 MnT in 2014. China Iron and Steel Association (CISA) predict a rise of 3 per cent in its demand which will amount up to 750 MnT in 2014.
European companies ArcellorMittal and Thysenn Krupp are expected to witness growth earnings in 2014 accompanied by Tata Steel Europe. According to Germany’s Steel industry association European Steel demand will probably rise in 2014. The country’s crude Steel output is likely to increase by 2 per cent in 2014 to 43 MnT annually as compared to 42.2 MnT in 2013.
Global Steel production is forecasted to have a growth of about 3.6 per cent in 2014. Correspondingly the demand for Steel worldwide, excluding that of China’s is expected to rise by 3.5 per cent annually in 2014, surpassing the growth of 3 per cent in China. World’s Steel demand growth in 2013 was recorded to be about 3.1 per cent. It is expected that in year 2014, the emerging Steel producers worldwide would be countries like India, the Gulf, Latin America and former Soviet states.