North American increase is predicted for only 1.5%

By Tom Stundza — Purchasing, 2/20/2008 9:39:00 AM

World steel production is projected to increase 5.7% this year to 1.42 billion metric tons from a preliminary 1.344 billion metric tons last year, forecasts MEPS (International) of Sheffield, England. The steel consultancy says the increase will be driven mainly by an expected increase in China’s output to 533 million metric tons from 489 million metric tons in 2007, a gain of 9%.

Russia and Eastern Europe, the area known in Europe as the Commonwealth of Independent States, or CIS, also is expected to show growth in production to 131million metric tons from 124 million metric tons in 2007, a 5.6% gain, the MEPS study suggests. MEPS also forecasts a marginal increase in the European Union (EU-27) output to 215 million metric tons from 210 million metric tons in 2007.

In the NAFTA region (Mexico, Canada and the U.S.), a small 1.5% improvement is forecast for this year to 134.8 million metric tons from 132.8 million in 2007—due mostly to reduced imports because of the weakness in the U.S. dollar that have created higher-priced markets elsewhere. Steel production in South America will rise to 52 million metric tons in 2008 from 48 million in 2007, mainly because of rising local demand.

~from Purchasing.com: World steel production will rise almost 6%