OECD (Organisation for Economic Co-operation and Development) has
said in its Recent Development Steelmaking Capacities Report that global
steelmaking capacities are expected to be increased by nearly 52 MnT during the
time period of 2018-2020.
According to the report, about 39 MnT of additional capacity is in
the planning phase, with the potential to come online prior to 2020.
Out of all the regions, Middle East is expected to see highest
increase with 31.5 MnT of capacity currently planned for completion by 2020.
The region underwent rapid expansion from 2007 to the present, with the total
capacity expanding from 24 MnT to 63.70 MnT in 2017.
In Middle-east, highest expansion has taken place in Iran and the
country expects to increase its total capacity from 28.2 MnT in 2016 to 52.8
MnT in 2020.
After Middle East, Asia has 19 MnT of capacity expansions underway,
with more planned, which could bring the total to almost 24 MnT for the period
2018-2020. With the capacity expansions expected in India, there is a
suggestion that it could be the world's second largest steel producer in the
next few years.
Africa has 5.90 MnT of expansions underway, with the bulk of these
investments focused in North African countries. These include Algeria-based
Tosyali's new 2.3 MnT EAF plant, which is expected to come online in 2018.
The CIS, Latin America and NAFTA (North American Free Trade
Agreement) region, all have capacity increases underway of 2.1 MnT, 1.6 MnT and
0.6 MnT, respectively.
Global steelmaking capacity currently has excess capacity, with a
capacity-production gap (overcapacity) of 561 MnT. In fact, the industry has
seen efforts by some countries including China to reduce their un-utilized
capacity.
Source: steel mint