The global steel production capacity is to increase by 52 million tons in the period 2018-2020

Global steel production capacity is expected to grow by almost 52 million tons in 2018-2020. The Organization for Economic Cooperation and Development stated in its Report on the recent evolution of this capacity.

The launch of the report comes ahead of the OECD Global Forum on Steel Overcapacity scheduled for September 17-18 and is part of the OECD’s ongoing effort to reduce overcapacity, which reached 561 million tons in 2017.

Regions with the expansion of steel production capacity

The Middle East is expected to see considerable increases during this period. With a capacity of 31.50 million tons currently planned for completion by 2020. The region has experienced rapid expansion from 2007 to the present. Total capacity increasing from 24 million to 63.70 million tons in 2017.

Iran is the main driver of the expansion of steel production capacity in the Middle East. The country expects to achieve a total capacity of 52.80 million tons by 2020. Up from just 28.20 million tons in 2016.

Asia also has a capacity expansion of 19 million tonnes underway, with another amount planned. Which could lead to a total value of almost 24 million tons for the period 2018-2020. With the expected capacity expansion in India, there is a hypothesis that it could be the second largest steel producer in the world in the next few years.

Currently, Africa has a capacity of 5.90 million tons. Most of these investments are concentrated in North African countries. These include a new 2.3 million ton EAF plant based in Algeria, which is expected to be inaugurated in 2018.

The Commonwealth of Independent States, Latin America and the North American Free Trade Agreement region all have a capacity increase of 2.1 million tons. Respectively 1.6 million tons and 0.6 million tons respectively.

Global steel production capacity is currently in a state of excess capacity. Even though the industry has seen the efforts of some countries, including China, to reduce their unused capacity.

Article source: https://www.spglobal.com/platts/en/market-insights/latest-news/metals/091318-global-steel-making-capacities-to-increase-by-52-million-mt-over -2018-2020-oecd