MEPS forecasts world steel output at 1350 million tonnes in 2010. This will be an all time high figure and represents an increase of approximately 11% over the anticipated outturn in the previous twelve months. Blast furnace iron production is also predicted to reach a record level in 2010. At 994 million tonnes, it would be almost 11% above the result a year earlier. Further significant gains are foreseen in 2011.
MEPS said that "The last peak year for global iron and steelmaking occurred in 2007 at almost 947 and 1345 million tonnes, respectively. Our latest forecast for 2010 indicates that the return to past glory will take just three years. This compares with 5 years in the early 1980’s and eight years in the 1990's."
It said that the current short recovery period is almost entirely due to the economic stimulus packages put in place by the Chinese government. With China accounting for almost 50% of both supply and demand, strong activity in this country, will have a positive impact on the global steel scene.