What Is The Extent Of Overcapacity In The Global Steel Industry?
An oversupply situation in the global steel industry has kept a lid on steel prices over the past few years. The impact of weakening demand as a result of slowing economic growth in China, the world’s largest steel consumer, was compounded by an increase in global steel production, driven by capacity additions in China. As a result of the weakness in demand and capacity additions, there is a significant amount of spare production capacity at a global level. Based on steel production and capacity utilization figures sourced from World Steel Association reports, we estimate that there was around 700 million tons of spare global steel production capacity in 2015.
Have more questions about U.S. Steel? See the links below.
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