2012 global steel industry overcapacity into a foregone conclusion

According to the Wall Street Journal, the total capacity of steel mills around the world this year was 1.8 billion tons, and the order they received was only 1.5 billion tons. The steel industry has not only failed to integrate the industry and improve its efficiency, but has instead expanded its production capacity.

According to industry executives and industry consultants, by 2016, it is estimated that about 100 new steel plants will be put into production globally, with a total capacity of approximately 350 million tons. Companies in Vietnam, Argentina, Ecuador, Peru and Bolivia are all building or planning to build new steel mills, and they have received some form of support from their respective governments.

Industry executives and analysts say that, to some extent, it is difficult to give the exact number of global steel companies and the actual capacity of the steel industry because there are hundreds of small steel mills that are not included in the statistics. 46% of global steel production. It is estimated that there are 600 to 800 steel mills in China. The issue of oversupply has lowered the steel prices and profits of the steel industry (this can be seen from the latest earnings report of the steel industry). It also led steel industry executives and investors to once again call for the integration and rationalization of the industry. ArcelorMittal is the world's highest producer of steel, but it only accounts for 6% of the world's total steel production. The company recently announced a loss of $709 million in the third quarter of this year. Lakshmi Mittal, chief executive of the company, said that he believes that the global steel industry is too scattered. As long as there is a suitable opportunity, ArcelorMittal will continue to focus on integrating other companies.