Demand For Steel
Steel and steel goods have been produced across the globe for over a thousand years. Demand for steel significantly increased once it was identified as an alternative to iron. It is prized for its durability and flexibility. Global steel prices and demand decreased in 2015.
Global Steel Production Trends
The decline in steel prices and demand has caused steel production around the world to decrease. Historically, over most of the last decade, it steadily increased. For example, production levels reached 1.1 billion tons in 2005, and in 2015, grew to 1.6 billion tons. It was not until the 2008-09 global economic crisis that production decreased slightly. Those numbers turned around slightly in 2010. Production dipped again in 2016 and production for 2017 is not expected grow, but it will remain stable. Many steel producing companies are competing to become the largest producers in the world. This article takes a closer look at those companies.
Biggest Steel Producing Companies In The World
The following companies are the largest steel producers in the world according to the annual volume produced.
The largest steel producing company is ArcelorMittal of Luxembourg. This company was created following the merger of Arcelor and Mittal in 2006. In 2015, this company produced 97.1 million tons of steel which is down from 98.1 million tons in 2014. This production accounts for between 6% and 10% of global steel supplies. Today, this organization provides over 232,000 jobs and has production facilities in 60 countries.
The second largest steel producing company in the world is Hesteel Group of China. In 2015, this company produced 47.7 million tons of steel, which is only roughly half that of ArcelorMittal. This organization was founded in 2008 and is comprised of several subsidiaries. Hesteel Group employs over 124,000 people. Depending on demand, this company produces galvanized plating, welded pipes, wire rods, and hot-rolled steel (to name a few).
Nippon Steel & Sumitomo Metal
Nippon Steel & Sumitomo Metal is on the list as the 3rd largest steel producing company. Based in Japan, this organization was created with the merger of two companies: Nippon Steel and Sumitomo Metal. Nippon Steel was first founded in 1970. In 2015, this company produced 46.3 million tons of steel.
Number 4 on the list is POSCO, with headquarters in South Korea. It was founded in 1968 and didn’t hit the global stage until 2011 when it produced 39.1 million tons. In 2012, it made the Global Fortune 500 list at number 146. Currently, POSCO has 2 operations in South Korea and a joint-venture in the US state of California. In 2015, this company produced 42 million tons of steel.
The fifth largest steel producing company in the world is Baosteel Group, a Chinese state-owned organization. It was founded in 1978 and is made up of a number of subsidiaries, including Baoshan Iron & Steel Co. Ltd., Guangdong Iron & Steel Group Co. Ltd., Xinxiang Bayi Iron & Steel Co. Ltd., and Ningbo Iron & Steel Co. Ltd. This organization has approximately 130,401 employees and produces stainless steel, special steel, and carbon steel. In 2015, it produced 34.9 million tons.
Other significant steel producing companies around the world can be found in the chart below.