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Top steelmakers 2012

Expansion stalls
Metal Bulletins eagerly awaited annual ranking of the worlds top steelmakers
provides an interesting snapshot of the relative fortunes of individual steelmaking
companies and groups.
After years of rapid expansion, at 1,547 million tonnes global crude steel production
was only marginally higher in 2012 than the previous year. Behind that stark statistic
lie multiple reductions in crude steel output for many steelmakers in 2012, in response
to generally lower demand, lower prices and, in many instances, national or regional
overcapacity.
Despite ranking number 1 again in 2012, even ArcelorMittals crude steel output
dropped by 3.7 million tonnes, or 4%, last year to 88.231 million tonnes.
China, for many years a reliable engine of steel demand and steelmaking capacity
growth, wobbled in 2012. Falls in crude steel output from 2011 to 2012 are evident for
over half of the Chinese steelmakers in the ranking table, buffeted by cooling demand
levels for steel in China and weaker export markets.
Tales of overcapacity, faltering demand and low prices recur in the regional reports
from our expert international correspondents of Metal Bulletin sister title Steel First.
Latin America and the Middle East are two regions bucking global trends through
capacity expansion. World trade in long products in particular rose sharply as
steelmakers looked for export markets when faced with poor domestic demand.
The commercial health of any given steelworks depends on a host of well known
fundamental factors. Availability of, sometimes captive, raw materials and
affordable energy are key. The age, capacity, flexibility, reliability and quality of its
furnaces, casters, mills and processing lines clearly have a bearing, together with the
skill levels and cost of its labour force. And certainly not least, demand for its specific
products, whether domestic or export, together with ease of access to its markets, is
obviously important.
The level of control a steel companys management has over each of these factors
ranges from total to next to none. While operational and capital investment
budgeting and planning are in their hands, levels of demand for the works products
are more heavily influenced by external factors. Add the political dimension and
significance of a given works to its local staff and community, region, or even nation
sometimes together with national or international governmental intervention on
trade or ownership for the picture to become more complicated.
Combine that basket of factors with those of other works owned, or majorityowned, by steelmakers with a portfolio of multiple international sites to create a
very complex landscape indeed. A companys crude steel production figure for 2012
effectively results from the aggregated influence of all those relevant factors.
Further insights into national, regional and global developments in steel production
and trade can be gained from the data collected by worldsteel and ISSB. In addition
to Metal Bulletins ranking data, a separate article in this supplement summarises the
developments those statistics illustrate.
And as a bonus to mark this years centenary of Metal Bulletins publication, our
supplement concludes with a timeline illustrating the history of steelmakers over
the past 150 years. No doubt the global steel industry will continue to develop over
the current century, as its geographical redistribution evolves, new technologies
for steel production and processing emerge, and future generations of steelmaking
entrepreneurs come to the fore.
CONTENTS
The new world ranking by production
World steel industry

by numbers
How global steel is changing in terms of output,

trade and demand
Around the regions
11
Key drivers and developments in the steel

industry around the world
Middle East aims for self-sufficiency
11
13
14
14
15
19
Steels long march
23
Mixed fortunes in Asia

Low prices hurt Russian steelmakers
Europe faces overcapacity
Tougher conditions than expected in USA
Increasing output in Latin America
To mark Metal Bulletins centenary year, a

look back at how the global steel industry has
evolved commercially since the 19th century
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Metal Bulletin Limited, 2013.
Printed by The Magazine Printing Company plc, Enfield, EN3 7NT, UK.
June 2013 | Top steelmakers | 3
Top steelmakers in 2012

Ranking Company
2012 2011*
Country of origin/
Main domicile
2011
Output
2012
Output
Ranking Company
2012 2011*
Country of origin/
Main domicile
2011
Output
2012
Output
ArcelorMittal SA
91.891
88.231
34 35

TISCO - Taiyuan Iron & Steel

(Group) Co Ltd
China
9.904
10.127
Luxembourg
2 2

Hebei Iron & Steel Group

Co Ltd
China
71.231
69.228
35 34

Jiuquan Iron & Steel (Group) China

Co Ltd (JISCO)
10.216
10.103
3 3

Nippon Steel & Sumitomo

Metal Corp
Japan
45.370
46.030
36 37
Pingxiang Iron & Steel Co Ltd China
9.073
9.124
9.105
42.696
Handan Zongheng Iron

& Steel Group Co Ltd
8.649
43.341
37 42

China
China
Korea (South)
37.325
37.986
38 38
Jinxi Iron & Steel Group Co Ltd China
9.038
9.103
37.685
36.424
39 39
ISDonbass Corp
Ukraine
8.924
8.885
40 36
Techint Group
Luxembourg
9.500
8.700
Baosteel Group Corp
POSCO
6 5

7
WISCO - Wuhan Iron & Steel

(Group) Corp
China
JFE Steel
Japan
31.679
32.545
41 41
Xinyu Iron & Steel Co Ltd
China
8.723
8.662
JSW - Jindal South West

Steel Ltd
India
7.400
8.510
Taiwan
8.756
8.382
China
8.214
7.981
Jiangsu Shagang Group Co Ltd China
Shougang Group
31.923
32.309
China 30.042
31.418
42 48

10 10
Anshan Iron & Steel (Group) China 28.500
30.200
43 40
11 11
Tata Steel Ltd
24.030
12 12
Shandong Iron & Steel Group China
24.023
23.006
44 43

United States Steel Corp

(US Steel Corp)
USA
21.990
21.444
13 13

India 24.350
China Steel Corp

Tangshan Guofeng Iron
& Steel
45 47
Erdemir
46 49
Salzgitter AG
Turkey
7.465
7.867
Germany
7.263
7.647
Spain
7.830
7.600
14 14
Gerdau SA
Brazil
19.623
18.920
47 44
Celsa Group
15 16
Nucor Corp
USA
17.745
18.021
48 51
Zenith Steel Group
China
7.012
7.565
voestalpine Group
Austria
7.720
7.485
16 18
Maanshan Iron & Steel Co Ltd China
17.013
17.339
49 45
17 15
Bohai Iron & Steel Group
19.194
17.317
50 57
Hebei Jingye Group
China
5.830
7.210
51 46

Nanjing Iron & Steel United

Co Ltd (NISCO)
China
7.645
7.176
Usiminas - Usinas
Brazil
Siderurgicas de Minas Gerais SA
6.699
7.158
18 17
Hyundai Steel Co
19 22
Riva Group
20 19
Evraz Holding
21 20
ThyssenKrupp AG
22 24
China
Korea (South)
17.134
17.054
Italy
16.079
16.000
Russia
16.773
15.945
52 54

Germany
16.700
15.300
53 50
Kobe Steel Ltd
Japan
7.160
7.010
Severstal
Russia
15.300
15.140
54 59
Fujian Sansteel (Group) Co Ltd China
5.716
6.948
23 21

Benxi Iron & Steel (Group)

Special Steel Co Ltd
China 16.490
15.100
55 53
CITIC Pacific
China
6.733
6.622
24 30

Novolipetsk Iron & Steel

Corp (NLMK)
Russia
11.968
14.923
56 55
Mechel OAO (Mechel)
Russia
6.118
6.532
4.874
5.659
Valin Group
China 15.890
14.113
CSN - Companhia
Siderurgica Nacional
Brazil
25 23
57 64

26 28
Jianlong Group
China
12.357
13.764
27 27

IMIDRO - Iranian Mines &

Iran
Mining Industries Development
& Renovation Organisation
12.508
13.600
28 26

SAIL - Steel Authority of

India Ltd
India
13.453
Rizhao Steel Group
China
Magnitogorsk Iron &

Steel Works - MMK
29 32
30 29

31 25
Metinvest International
59 63

Metalloinvest Holding Co
Saudi Iron Steel Co
(Hadeed)
Russia
5.821
5.619
Saudi Arabia
5.428
5.525
Sweden
5.671
5.253
60 61
SSAB - Svenskt Stal AB
13.400
61 56

Chongqing Iron & Steel

(Group) Co Ltd
China
6.006
5.223
11.368
13.223
5.532
5.201
12.195
13.037
Shaanxi Longmen Iron

& Steel (Group) Co Ltd
China
Russia
62 62

USA
5.699
4.888
Ukraine
14.375
Egypt
4.600
4.793
10.221
32 33

Baotou Iron and Steel

(Group) Co Ltd
China
33 31

Anyang Iron & Steel Group

Co Ltd (AISCO)
China
4 | Top steelmakers | June 2013
58 58
11.773
63 60
AK Steel Corp
12.459
64 67
Ezz Steel Co
10.185
65 66
Steel Dynamics Inc
USA
4.717
4.743
66 52
BlueScope Steel Ltd
Australia
6.785
4.742
67 75
Xinxing Ductile Iron Pipes Co China
3.757
4.361
68 68
Essar Steel Ltd
4.350
4.200
10.164
India
Ranking Company
2012 2011*
Country of origin/
Main domicile
2011
Output
2012
Output
Ranking Company
2012 2011*
Country of origin/
Main domicile
2011
Output
2012
Output
China
2.210
2.714
Belarus
2.600
2.691
China
2.713
2.681
69 69

Icdas Celik Enerji Tersane

ve Ulasim San AS
Turkey
4.223
4.083
97 116

70 74

Ahmsa - Altos Hornos

de Mexico SA de CV
Mexico
3.805
3.879
98 102 Belorussian Steel Works

(BMZ)
71 73
Commercial Metals Co
USA
3.806
3.816
Ukraine
3.812
3.785
99 98

India
2.390
2.680
3.755
101 112
Colakoglu Metalurji AS
Turkey
2.350
2.605
72 72

Zaporizhstal Integrated
Iron & Steel Works JSC
Shanxi Jincheng Steel

Holding (Group) Co Ltd
Lengshuijiang Iron &

Steel Group Co
100 109 JSW Ispat Steel Ltd
73 78
Delong Holdings Ltd
China
3.566
74 71
Nisshin Steel Co Ltd
Japan
3.820
3.730
102 95
Xingtai Iron & Steel Co Ltd
China
2.806
2.590
75 77

Lingyuan Iron & Steel

(Group) Co Ltd
China
3.593
3.563
103 82
Qingdao Iron & Steel Group Co China
3.183
2.528
76 83

Quzhou Yuanli Metal Co Ltd

(formerly Zhejiang Yuanli
Group)
China
3.114
3.485
104 113

Arrium Ltd (previously

OneSteel Ltd)
Australia
2.310
2.500
105 105 Trineck elezrny as Czech Republic
2.480
2.493
77 88

Emirates Steel
Industries PJSC
106 110
78 79

79 84

Diler Group
Turkey
2.374
2.456
107 126 JFE Bars & Shapes Corp
Japan
1.395
2.438
Japan
2.734
2.410
Germany
2.362
2.315
China
1.369
2.313
China
2.120
2.310
United Arab
Emirates
3.000
3.480
Hebei Qianjin Steel

Group Co Ltd
China
3.537
3.431
108 97

Dongkuk Steel Mill

Co Ltd
Korea (South)
3.063
3.313
109 111
China
2.619
3.283
110 127

Xilin Iron & Steel Group
China
3.033
3.259
Rautaruukki Oyj
Finland
2.215
2.299
82 101

Henan Jiyuan Iron &

Steel Group Co Ltd
China
2.606
3.252
113 104 AG der Dillinger

Huttenwerke
Germany
2.497
2.298
83 76

Hangzhou Iron & Steel

Group Co
China
3.648
3.249
114 117

Minmetals Yingkou
Medium Plate Co Ltd
China
2.209
2.253
84 70

Shanxi Highsee Iron &

Steel Group Co Ltd
China
3.932
3.246
115 118

Shanxi Zhongyang Iron

and Steel Co Ltd
China
2.205
2.219
85 89

Tianjin Rockcheck Steel

Group Co Ltd
China
2.988
3.224
116 125

Dongbei Special Steel

Group Co Ltd
China
1.867
2.214
86 81

Rashtriya Ispat Nigam Ltd.

Visakhapatnam Steel Plant
(Vizag Steel)
India
3.235
3.128
117 123
Acerinox SA
Spain
2.021
2.200
118 121
Feralpi Group
119 122
Qatar Steel
80 100 Fangda Special Steel

Technology Co Ltd
81 85
87 87

Tokyo Steel Manufacturing

Co Ltd
Saarstahl AG
Tangshan Donghai Iron
& Steel Group Co Ltd
111 120 Jiangsu Shente Steel

112 115
Italy
2.091
2.190
Qatar
2.038
2.175
China
2.426
2.124
France
2.251
2.092
Tangshan Ganglu Iron &

Steel Co Ltd
China
3.011
3.061
88 86
Dazhou Iron & Steel Co
China
3.019
3.030
89 93
Deacero SA de CV
Mexico
2.841
2.977
121 114
90 90
Sichuan Tranvic Group Co Ltd China
2.947
2.965
2.145
2.028
China
2.813
2.963
Badische Stahlwerke
GmbH
Germany
Shandong Shiheng Special

Steel Group Co Ltd
122 119

2.032
2.026
2.710
2.940
Nanyang Hanye Steel

& Iron Co Ltd
China
Italy
123 122

Switzerland
4.800
2.879
Korea (South)
1.990
1.960
Russia
2.848
2.846
Siderurgica del Orinoco Venezuela

Alfredo Maneiro (Sidor)
2.458
1.720
95 103 Shandong Taishan Iron

& Steel Co Ltd
China
2.525
2.812
96 96

China
2.755
2.745
91 94

92 99
Acciaieria Arvedi SpA
93 65
Duferco SA
94 92
OAO TMK
Jiangyin Huaxi Iron & Steel

Co Ltd (formerly Jiangsu
Huaxi Steel & Iron Co Ltd)
120 108 Weifang Special Steel

Group Co Ltd
124 124
125 107

Vallourec
Dongbu Steel Co Ltd
www.mbdatabase.com
All figures in million metric tonnes

*Based on updated 2011 crude steel output. Ranking movement:
Up
Down
Unchanged.

Global steel review
World steel industry

by numbers
What trends do global steel statistics demonstrate
in production and trade?
While Metal Bulletins top steelmakers
ranking says much about the size and
fortunes of individual steelmaking
companies and groups, the statistics
collected and published by the World Steel
Association (worldsteel) and the
International Steel Statistics Bureau (ISSB)
reflect national, regional and international
trends in steel production and trade.
Driven primarily by the extraordinary
growth in Chinas steel industry, the
relentless rise in world crude steel production
during the first decade of the new
millennium was only temporarily halted by
the economic crisis of 2008-9, before
annual world crude steel

production 2000-2012*
1,600
1,400
1,200
1,000
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
800
*million tonnes
Source: World Steel Association
Top-ten steel-producing
countries 2012*
800
600
recovering at a pre-crisis growth rate to

exceed the previous record high of 1,347
million tonnes, set in 2007, by more than 6%
in 2010 (see graph).
Total crude steel output grew again in 2011
to reach 1,536 million tonnes, beating 2010
output by 104 million tonnes, or 7.3%. Last
years output, however, climbed only very
slightly to 1,547 million tonnes failing to
register an increase of even 1%, by contrast
with the close to double-digit annual
percentage rises seen in the early years of the
2000s.
While progress in steel production capacity
growth is very mixed by region, a slowdown
apparent consumption of
iron ore 2011*
EU27
CIS
Nafta
Central & S America
Africa
Middle East
Asia
World
*Million tonnes actual weight
exporters of ferrous scrap 2012*

EU27
Other Europe
CIS
Nafta
Central & S America
Africa
Middle East
Asia
World
*Million tonnes
400
145.2
135.4
69.4
83.1
8.7
38.2
1,388.4
1,913.0
46.8
2.5
5.8
26.5
1.8
2.6
1.2
11.7
101.7
IMporters of ferrous scrap 2012*
200
*million tonnes
Br
a
Uk zil
ra
in
e
y
Tu
rk
ey
a
re
an
rm
Ko
Ge
ia
di
ss
ut
So
In
Ru
n
pa
St
Un
it
ed
Ja
at
a
in
Ch
es
EU27
Other Europe
CIS
Nafta
Central & S America
Africa
Middle East
Asia
World
*Million tonnes
31.4
23.3
1.8
7.0
0.5
2.5
0.2
37.6
104.5
in Chinas manufacturing growth and

uncertainties about the priorities of the
countrys new leadership, only tentative
economic growth in the USA, and the stifling
effects of austerity measures in Europe make
a break in rapid global steel production
expansion last year anything but surprising.
Of the top ten steelmaking nations in 2012
(see chart), which accounted for about 82.5%
of global crude steel output, just six achieved
small increases in output over production in
2011, while the other four Japan, Germany,
Brazil and Ukraine actually saw small falls.
In that top group, India saw the healthiest
percentage rise in output, by 5.6% to 77.6
million tonnes. The only nation to cap that
rate of growth in worldsteels ranking of
major steel-producing countries, United Arab
Emirates, was placed 38th on the basis of 2012
crude steel production, with an approximate
40% increase to an estimated 2.8 million
tonnes. Latest data for Emirates Steel
Industries for Metal Bulletins ranking show
an output of 3.48 million tonnes for 2012,
placing the company in 77th place among top
steelmakers.
Over the ten years from 2002 to 2012, during
which global crude steel production grew by
70%, the EUs percentage contribution has
halved to about a tenth of world output, the
Nafta regions share has shrunk from 13.4% to
7.8%, while Chinas portion of global crude
steel production has more than doubled from
just over a fifth to nearly a half.
Raw material consumption

Virtually all crude steel production last year
came from oxygen (69.6%) or electric (29.3%)
steelmaking, with the last vestiges of open
hearth production still running in Russia and
the Ukraine accounting for most of the 1.1%
balance.
The ratio of BOF to EAF production varies
significantly between region and nation,
however, reflecting access to raw materials
and affordable energy, as well as the history
and age of the host nations steel production
capacity and industrial base. While the EU has
what some might see, from recent years at
least, as a traditional or typical 60:40
oxygen/electric ratio, the rise of mini-mill
production in the USA sees that roughly
reversed to 40:60.

Global steel review
At the extremes of the range, the Middle East

a relatively young industry with plentiful
power supplies and a tendency to base steel
production on DRI produced 90% of its 22.1
million tonnes of crude steel output in 2012 via
electric furnaces.
Conversely China depended on oxygen
steelmaking to produce 90% of its 716.5
million tonnes of crude steel production in
2012. At about 1 billion tonnes (over half of the
global total), apparent iron ore consumption
data highlight Chinas dependence on the raw
material.
The EU27 region reigns supreme for both
exports and imports of ferrous scrap, at 46.8
million and 31.4 million tonnes respectively.
Turkey, with its multiple EAF-based
mini-mills, accounts for one-fifth of global
imports of the feedstock.
Trade trends
Flat products continue to dominate global
trade in steel mill products, given their
generally higher value per tonne and
consequential greater ability to justify freight
costs and travel further. At 140.7 million tonnes
(excluding EU internal trade), they accounted
for nearly half of the trade in 2012 a fall of
2.6% on the level in 2011, but only 1.5 million
tonnes less than the pre-crisis peak of 142.2
million tonnes.
Global semis trade actually increased by 2
million tonnes by comparision with 2011, but
long products saw an 11% jump to 67.6 million
tonnes. Long product mills with poor domestic
construction markets that booked export sales
instead accounted for much of this rise.
At 34.4 million tonnes, trade in tubes held up
well at a similar level to 2011 as global demand
for oil & gas production remained strong.
The long-term steady decline in the
percentage of finished and semi-finished
steel products exported globally continued
last year. Worldsteel data registered total
GLOBAL TRADE IN STEEL MILL PRODUCTS*

Semis
Long
Flat
Tubes
2006
58.9
60.1
134.8
30.0
2007
57.4
71.2
142.2
32.6
2008
57.0
69.1
136.4
35.5
top 10 IMPORTERS of steel 2012
Rank
1
2
3
4
5
6
7
8
9
10
Rank
1
2
3
4
5
6
7
8
9
10
Total Exports
China
European Union (27)*
Japan
South Korea
Russia
Germany
Ukraine
Turkey
Italy
France
*Excluding intra-regional trade
Mt
54.8
47.1
41.5
30.2
26.7
26.0
24.1
18.7
18.3
14.6
exports of 414.0 million tonnes in 2012, or

28.7% of production. This compares with
38.2% ten years earlier, which emphasises
how, broadly at least, much of the very
substantial increase in steelmaking capacity
that has been added over the past ten years,
has found markets locally.
Given the much-changed geographical
location of that capacity, however, worries
about the export potential of Chinese
steelmakers in a stalling domestic market
continue to overshadow other nations
steelmakers based in Chinas target markets,
stimulating international WTO trade cases and
calls for protective tariffs and duties. Although
just a small percentage of the nations output,
54.8 million tonnes placed China at the top of
worldsteels list of steel exporters for 2012.
Long-term outlook
Given the relationship between population
growth and steel demand, trends in apparent
steel use per capita (kg finished steel products)
450
400
350
300
250
200
150
50
100
12
20
11
20
10
20
09
20
08
20
07
20
20
12
20
11
20
10
20
09
20
08
20
07
20
06
20
06
50
Africa
Asia
EU
NAFTA
Middle East
World
Other Europe
Central and
South America
*kg of finished steel products
2012
52.7
67.6
140.7
34.4
top 10 exporters of steel 2012
250
100
2011
50.7
60.8
144.4
34.6
Source: ISSB
apparent steel use per capita*
150
2010
52.8
56.1
137.8
28.3
*Million tonnes
apparent steel use per capita*

200
2009
48.8
51.4
110.7
24.2
CIS
*kg of finished steel products
Total Imports
United States
European Union (27)*
Germany
South Korea
Thailand
China
Italy
France
Indonesia
Turkey
**Excluding intra-regional trade
Mt
31.5
29.5
22.9
20.4
15.2
14.2
13.9
13.2
12.2
11.5
offer a useful measure of the extent to which

regional economies have a mature or growing
industrial base and the direction in which
industry is moving (see graphs).
From a peak of 402.0 kg per capita in 2007,
the EUs steel intensity has dropped
substantially over the five years to 2012 to reach
just 278.5 kg. A combination of a relatively
stable population with a declining steel
industry accounts for that fall.
Having dropped substantially during the
same period, per capita consumption in the
CIS has recovered over the last three years to
reach almost an identical level to that in 2012
(218.2 kg). The Nafta regions annual steel use
curve followed a similar trajectory over
2007-2012, but recovery has been weaker at
281.1 kg, which is 37.7 kg less than in 2007.
Unsurprisingly, Asia is showing the most
consistent rate of growth in apparent steel use
per capita, while Africa has great potential to
increase its consumption from the lowest per
capita base.
While growing populations and developing
economies imply long-term growth in steel
demand, maintaining profitability in the
short-term is the main concern for many
steelmakers now. The annual results of SMS
Group, one of the largest international steel
plantmakers, announced in early June, are
symptomatic of the present cautious mood,
with the order intake for SMS Siemag (flat
product technology) contracting by 24% to
1.519 billion year-on-year, while SMS Meers
(long products) decreased by 16% to 1.152
billion.
Nevertheless, Dr. Heinrich Weiss, SMS group
chairman and ceo, provided a glimmer of
optimism for the near future: Despite a
persistent reluctance of our customers to
invest, we expect a slight recovery on the
market by the end of the year, he stated.

Regional reports
Around the regions
Metal Bulletin sister title Steel Firsts global network of journalists analyse
what has been happening in their regions in 2012 and look at the drivers
for future developments and markets
Mixed fortunes in Asia
China
Of the 57 Chinese steelmakers on the list of the
worlds Top Steelmakers in 2012, more than
half posted lower production than in 2011.
This reflects at least two underlying trends:
first, the overall slowdown in Chinese steel
output during a challenging year for the
countrys industry. And secondly, the fact that
it was many of the biggest steelmakers that
were worst hit by the downturn. Hebei Steel,
Baosteel, Wuhan Steel, Shandong Steel and
Bohai Steel all in the global top 20 each
saw a fall in production.
There is no doubt that 2012 was one of the
most difficult years for Chinas steel industry in
decades. The economy slowed in response to a
continued credit squeeze by the Chinese
government that led to lower growth in key
steel-intensive sectors such as residential
construction and the auto industry.
In contrast to 2008, when the Chinese
government lavished cash on the economy to
sustain demand during the initial worst phase
of the world financial crisis, in 2012 Beijing was
in no mood for stimulus spending.
The result was build-up of excess inventory

in the first half of the year followed by a
collapse in prices as demand proved much
weaker than expected.
The top four Chinese steelmakers all posted
lower output: Hebei Steel, the global number
two producer, saw production fall by 2.8% to
about 69.23 million tonnes, while Baosteels
production fell by 1.5% and Wuhan Steel by
3.4%.
However, so far this year, total Chinese steel
production has risen strongly, with national
crude steel output rising 8.4% year-on-year in
the first four months to 258.2 million tonnes.
But there is once again a danger of oversupply,
as key indicators for manufacturing show
renewed weakness.
steelmakers: chief among them a declining

manufacturing base at home, as well as
tougher regional competition.
The very logically-titled Nippon Steel &
Sumitomo Metal Corp (NSSMC) produced 46
million tonnes, up about 1.5% on a like-forlike basis, and placing the company at overall
third place on the list. Nippon Steel was
previously in 6th place and Sumitomo in 27th.
Meanwhile JFE Steel lifted output by about
2.7% to 32.55 million tonnes, giving it the
global number 7 spot.
One of the key points of interest for 2013 will
be how NSSMC, JFE and the other Japanese
steelmakers benefit from Abenomics the
sharp change in economic and monetary
policy launched by Japanese premier Shinzo
Abe earlier this year.
The deliberate devaluation of Japans yen
and a massive injection of liquidity into the
financial system are aimed at boosting
demand and helping exporters to end Japans
decade-long stagnation. The first signs are
that the economy is picking up and
steelmakers are enjoying some immediate
benefits. But the question is whether this
short-term momentum can turn into a
long-term shift in the fortunes of Japans steel
producers.
Japan
In one of the biggest moves in the industry last
year, Nippon Steel, already Japans biggest
steelmaker, and Sumitomo Metal Corp,
previously the third-biggest in the country,
completed their merger in 2012. The tie-up,
which had been mooted and discussed for
many years, is intended to help the companies
cope with the challenges facing Japanese
South Korea
SMS Siemag
One of the biggest stories in Asias steel

industry in the past two years has been the
expansion of the South Korean steelmakers.
The additional capacity means tougher
regional competition, especially for custom in
the fast-expanding markets of Southeast Asia.
The combined output of the four South
Korean steelmakers on the list rose about 1.3%
to 60.31 million tonnes last year. Posco, the
biggest of the countrys steelmakers, took
overall fifth place after its production went up
about 1.8% to 37.99 million tonnes. Hyundai
Steel fell slightly by 80,000 tonnes to just over
17 million tonnes, but it expects to start up its
third blast furnace in September and will
therefore significantly boost its steel output
this year.
South Korea has been expanding output and creating tougher competition in the region
India
Indias economic growth slowed to its lowest
level of a decade in 2012, at 4.5%. SteelJune 2013 | Top steelmakers | 11

Regional reports
Low domestic prices hurt

Russian steelmakers
Falling coking coal and iron ore prices, losses
at foreign assets and low domestic prices were
the biggest headaches facing Russian
steelmakers in 2012.
Despite the challenging market
environment, the countrys companies
continued to run their facilities at close-tofull utilisation rates last year, reporting
margins that their international competitors
would envy, thanks to traditionally lower
production costs.
Vertical integration played against some
Russian steelmakers as their fixed costs for
production of raw materials remained largely
unchanged, while the prices of coking coal
and iron ore tumbled, and steel product prices
also fell, says Oleg Petropavlovskiy, an analyst
with Russian investment bank BCS.
However, a principal winner in the low iron
ore and coking coal pricing environment in the
second half of last year was Magnitogorsk Iron
& Steel (MMK), the least vertically integrated of
the major Russian steelmakers.
A drawback for some Russian steelmakers
profitability last year was their foreign assets.
Novolipetsk Steels (NLMK) overseas rolled
product arm, which has facilities in Belgium,
France, Italy, Denmark and the USA, made a
loss in 2012 despite a cost reduction
programme, because of poor demand in
Europe.
MMKs production complex at Iskenderun in
Turkey also saw its losses rise last year. The
parent company halted production at the
mills electric arc furnace and hot rolling
facilities in November, citing lower market
prices and higher input costs. Production has
yet to restart.
A bigger headache for Russian steelmakers,

though, was a fall in domestic flat steel prices.
Weak export markets prompted the steel
producers to redirect some of their export sales
to the home market, which boosted supply
and put pressure on domestic prices.
Despite a significant fall in profitability,
Russian steel companies performed better than
their international peers, according to Fitch
Ratings Moscow-based metals and mining
analyst Alexei Fadyushin. Fitch expects Russian
steelmakers to keep their margins flat this year
compared with 2012, and to continue running
their operations at high utilisation rates.
Russian steelmakers have said the key
challenges they are facing from 2013 onwards
are low domestic demand, overcapacity, rising
costs and the threat of imports.
Insufficient domestic steel demand with
about 70 million tonnes of crude steel
produced annually yet as little as 40 million
tonnes consumed is one of the key problems,
NLMKs head of strategic development,
Konstantin Arshakuni, said at a recent
conference.
All major Russian steelmakers including
NLMK, MMK and Severstal said their priority is
to increase domestic sales as export demand
weakens, as the cost of railway transportation
to the sea ports from their plants located across
Russias vast territory keeps on growing.
Construction driven
Russian steel consumption is expected to rise
by an average of 3% annually in the next five
years, driven by the construction sector, the
countrys largest end user of steel, along with
the growing need for steel in the white goods
sector and among automobile manufacturers.
Some have argued, though, that the growth
in demand may not be sustainable, as the

construction sector depends on unpredictable
state funding, while the slowing economy
could have a significant impact on white goods
and car sales.
Despite limited demand, Russian producers
have demonstrated what Severstals head of
corporate strategy Andrei Laptev has described
as a lack of discipline in capacity additions.
Other Russian steelmakers agree that this is a
major problem.
The amount of surplus production capacity
for long product steel in Russia is expected to
shoot up by as much as 30% this year, as long
product steel consumption is expected to reach
17.6 million tonnes, while capacity is expected
to rise to 31.1 million tpy, according to Metal
Expert Consulting.
Nevertheless, Severstal itself is launching a 1
million tpy long-products mini-mill at
Balakovo, in Russias Saratov region, sometime
between July and September.
The growing costs of energy, railway
transportation and labour, amid the weak
pricing environment are other big challenges.
Russian steelmakers have been enjoying some
of the lowest production costs globally, but
their competitive position has been partially
eroded in the last few years due to the growth
in prices for electricity and gas.
As export markets sour, steel product imports
rise, which is yet another challenge for Russian
steelmakers. Russias rolled steel product
imports grew by 7% to 7.4 million tonnes in
2012, while steel consumption rose by 5% to 40
million tonnes. Some expect steel product
imports into Russia to continue growing faster
than the countrys consumption in the coming
years.
Nadia Popova, Moscow, Russia
SMS Siemag
consuming sectors such as the auto industry

seen as one of the most promising areas for the
steel market posted negative year-on-year
growth in three of the four quarters last year.
Infrastructure spending growth was also
restrained as the government tried to contain
inflation.
The result was that the rate of expansion in
Indias steel industry was modest, but still
positive, at 4.2% overall still the highest rate
among the five biggest steel-producing
nations.
Of the six Indian steelmakers on the list, four
of them recorded lower output, although
mostly by quite small margins that were easily
eclipsed by a big rise in output at JSW Steel. The
countrys third-biggest steelmaker saw output
rise by 19.2% to 8.51 million tonnes. Only two
other steelmakers outside China posted bigger
percentage increases last year, and JSW moved
up on the rankings to 42.
Russia depends on exports to soak up production that greatly exceeds domestic demand

Regional reports
Europe faces overcapacity

European steelmakers faced squeezed margins
amid overcapacity in 2012. Companies were
forced to shut down plants and reduce staffing
levels.
However, Luxembourg-based international
steel giant ArcelorMittal held its number one
spot in the global rankings in 2012. The
company produced 88.2 million tonnes of
steel across its worldwide plants in 2012, down
3.6 million tonnes year-on-year, but
remaining 19 million tonnes ahead of global
number two in the rankings, Chinas Hebei
Iron & Steel Group.
ArcelorMittals net loss for 2012 was $3.226
billion, compared with a net profit of $4.898
billion the previous year. But the company is
upbeat for 2013, predicting more marketable
iron ore shipments from its expanded mines in
Canada.
ArcelorMittal had stopped commodity steel
production at its 2.7 million tpy capacity
Florange plant in France and 3.2 million tpy
capacity Lige mill in Belgium by early 2013.
The company has instead invested in special
steel production at the sites, reflecting a move
many of Europes steelmakers are taking,
including Finlands Rautaruukki and Austrias
Voestalpine.
The Milan-based Riva group owns Europes
largest steel plant, the 11.5 million tpy capacity
Taranto mill in southern Italy. Riva remained
one of the top-ranking steel producers based
in Europe, despite threats of closure at Taranto
throughout 2012 due to questions over the
plants environmental standards.
Rivas total output was 16 million tonnes in

2012, placing it at the number two spot for
European-based steelmakers, while output
was down 79,000 tonnes year-on-year.
ThyssenKrupp, based in Duisburg, Germany,
reduced its steel output amid longer term
plans to cut jobs in Europe and improve
efficiency. The company dropped to third
place of the Europe-based producers from the
number two spot in 2011, producing 15.3
million tonnes of steel in 2012, down 1.4
million tonnes year-on-year.
The Luxembourg-based Techint Group
remained the fourth largest steel company by
volume based in Europe. It also reduced its
steel output, by 800,000 tonnes year-on-year
in 2012 to 8.7 million tonnes. While Europebased, the majority of the companys
production facilities are in the Americas.
Salzgitter, based in the city of Salzgitter in
Germany, ranked the fifth largest steel
producer based in Europe, overtaking the
Barcelona-based Celsa group. Salzgitter was
the only one of Europes top-five steelmakers
to increase its production in 2012.
The company produced 7.6 million tonnes of
steel in 212, up 384,000 tonnes. Salzgitter
increased its deliveries to companies in the
tube division and exports to countries outside
the European Union during 2012, the company
said in its results statement in February.
financial adviser PricewaterhouseCoopers,

recently said at a steel industry meeting in
Prague. 2007 will never come back again.
Industry players increasingly accept there is
structural overcapacity in the region. Figures
vary, but in 2011 steelmaking overcapacity in
Europe was estimated at 79 million tonnes,
according to the OECD. European excess
capacity was estimated in a 60-70 million tpy
range by the md of distribution and trade
association Eurometal, Jrgen Nusser, at the
recent Prague industry meeting.
Structural overcapacity is pushing down steel
prices across the supply chain, and squeezing
mill margins. In northern Europe the average
price of ex-works hot-rolled coil in 2012 fell
6% year on year in 2012 to 521 per tonne,
according to Steel First data.
And the outlook for demand in 2013 remains
weak. The World Steel Asssociation
(worldsteel) expects apparent steel use in
Europe to contract by 0.5% over the course of
2013 to 139 million tonnes, it said on April 11.
This is down from its October forecast for 2013
growth of 2.4% to 148 million tonnes.
Worldsteel director general Edwin Basson
cited OECD figures on steelmaking overcapacity
in Europe as one reason for the associations
less-optimistic outlook for the region.
But while the industry considers contraction,
labour unions are pushing to keep steel plants
open. We want as much as possible to
maintain capacity in Europe, deputy general
secretary at European trade union IndustriAll
Bart Samyn said at a recent meeting of the
industry in Brussels. There are 360,000 jobs in
the steel sector in Europe, according to Samyn.
The European Union is launching an action
plan for industry, which is expected to feature
tax breaks to help steelmakers remain
competitive in Europe.
The European Steel Association Eurofer sees
some light on the horizon. Its director for
market analysis and economic studies, Jeroen
Vermeij, expects stabilisation towards the end
of 2013, and moderate growth in 2014.
Naomi Christie, London, UK
Outlook deteriorates
The European steel industry has resigned itself
to reduced production in the long term. What
Europe has lost in the crisis cannot be
recovered, Erwin Bronk, a partner with global
Arvedi Steel
Tougher conditions than

expected in the USA
Advanced technology such as endless strip production at Arvedi Steel is helping to keep European
plants as competitive as possible in tough regional and international markets
Global and domestic economic uncertainties,

overcapacity and a weak pricing environment
has resulted in 2013 being a more challenging
year than expected for US steelmakers.
Nevertheless they have expressed cautious
optimism that some of their business
decisions will position themselves to have a
competitive edge for the future.
The magnitude and the duration of the
ongoing recession is unlike anything weve
experienced in our lifetime, now we are five
years into what remains a depressed and
Choppy recovery
This, according to Christopher Plummer,
managing director of Metal Strategies,
Pennsylvania, is in accordance with the slow,
choppy recovery of the US steel market ever
since it started to pick up in 2009. He notes
that US apparent steel consumption fell 6.4%
year-on-year during the first quarter on a 7.1%
decline of domestic crude steel output
compared with a 7.8% increase of apparent
steel consumption and a 2.7% increase of
crude steel output in the first quarter of last
year.
Nevertheless, James L. Wainscott, chairman,
president and ceo, AK Steel, Ohio says there are
a number of positive trends in the market
including continued recovery of both the
domestic and global economies, a continued
increase in domestic automotive production,
increases in housing starts and the realisation
of lower raw material costs due in part to the
implementation of vertical integration
commissioning its DRI facility in St. James

Parish, Louisiana, and is expected build a
second DRI plant there too, given that the
infrastructure to do so is already in place.
However, no official announcement has been
made.
John Tumazos of Very Independent Research,
however, questions the logic of making these
upward integration moves at this time. It
seems to me that they are fighting yesterdays
war when there had been raw material
shortages, he says.
Strong dollar problem
ThyssenKrupp
stagnant global economic environment, says

John Ferriola, president and ceo of Nucor,
North Carolina, which despite this rose to No.
15 in Metal Bulletins Top Steelmakers 2012
ranking from No. 16 in 2011. Against this
backdrop, steel market fundamentals remain
very challenging, with domestic mill capacity
utilisation remaining mired in the 70%
range, he adds.
In the year to June 8, according to the
American Iron and Steel Institute, operating
rates were 76.7% against 78.8% a year earlier.
For the past year or more, mill operating rates
have been fluctuating between 75% and 80%,
although some sheet mills focused on the
automotive market are reported to be running
at or near 90% of capacity.
Longer term, Ferriola is bullish about the
opportunity for growth. The time is right for a
US economic renaissance fuelled by our
countrys abundant energy resources, he
says. While the US market is now oversupplied,
he says that US steel demand (although less
than stellar at present) has been slowly
improving quarter by quarter. Unfortunately
more and more capacity is being brought
online and imports continue to come into the
country at very high levels. As long as that
situation exists, its going to be a very
challenging steel market.
Amy Bennett, principal steel consultant for
Metal Bulletin Research, says 2013 will be a
tougher year than was previously forecast,
especially with the market not getting as much
a traditional first-quarter push, and
steelmakers will be struggling to make
year-on-year gains, although she is still
hopeful that they will be seeing some strength
late in the third quarter and early in the fourth
quarter.
Rationalisation of capacity may follow if a US

company purchases ThyssenKrupp Steel USA in
Alabama
strategies.
There is also potential for manufactured
goods to build momentum in 2013, says
Marlene Owen, director of investor relations
for Indiana-based Steel Dynamics, which rose
to the No. 65 Top Steel maker in 2012. Plummer
notes that non-residential construction,
which tends to lag housing by a year or two,
has begun to come off of its bottom, but at this
point is only up about 5% from an
exceptionally low base and is not expected to
see marked improvement until 2014 or 2015.
In an effort to reduce costs and become more
self-efficient in inputs, Wainscott says that in
addition to enjoying lower costs that are the
result of sluggish global economic conditions,
AK Steel has secured long-term agreements for
iron ore and metallurgical coal, and has
aquired interests in the raw materials as well.
Many other major US mills both integrated
and mini-mill also continue to make moves
to be more self-sufficient in raw materials. For
example, US Steel, which maintained the No.
13 position in 2012, recently became
self-sufficient in its coke requirements with
the start-up of its C coke battery in Clairton,
Pennsylvania, and one of the two Cokonyx
plants at Gary, Indiana, and is looking into the
possibility of producing low-silica direct
reduced iron (DRI) pellets from the iron ore
bodies at the steelmakers mines.
Steel Dynamics is now self-sufficient in
alternative iron units from production at both
its Mesabi Nugget and Iron Dynamics
operations, and Nucor has begun
A big concern is that while there is already too

much steel supply chasing demand, there
have also been fewer export possibilities and a
possibility of increased imports given the
stronger US dollar and weaker global markets,
declares Lynn Lupori Gray, senior consultant for
Hatch Management Consulting, Pittsburgh.
There could be some rationalisation of
capacity, especially when integrated mills are
faced with having to reline their blast
furnaces, according to Charles Bradford of
Bradford Research. Bennett says that
rationalisations are also a distinct possibility
should a US company, or a foreign-owned
company with US assets, purchase
ThyssenKrupp Steel USA in Calvert, Alabama, as
they will be careful not to flood the market
with excess metal.
Even if a domestic company picks up Calvert,
it could be a few years before it makes the
strategic decision to idle or permanently close
down capacity, Plummer adds.
Some industry observers also express
concerns about other additional capacity
possibly coming on-stream, including the 1.7
million short tpy Big River Steel mill to be
headed by steel industry veteran John Correnti,
which is expected to break ground in Osceola,
Arkansas, in the third quarter. It would supply
flat-rolled steel to the oil and gas, automotive
and electrical industries.
Myra Pinkham, New York, USA
Increasing output in
Latin America
Latin Americas largest steelmakers performed
better last year in comparison with 2011, at
least in terms of crude steel output. With the
exception of Brazil-based Gerdau, all the
other Latin American companies that make
this years ranking of Metal Bulletins Top
Steelmakers produced more steel in 2012, as
they fought to replace imports and raise their
market share within the region.
Brazils Usiminas is a clear example of such a
trend. With two integrated mills able to
produce a combined 9.5 million tpy of crude
steel, the company produced only 6.69

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million tonnes in 2011. Luxembourg-based

steelmaker Ternium then acquired a 27.66%
stake in the Brazilian company and named
one of its top executives, Julin Eguren, to
head the operation and look for its
turnaround. A focus on operational efficiency
paid off in 2012, with crude steel output
rising by almost 500,000 tonnes, to 7.15
million tonnes.
Brazils CSN also added a significant volume
of crude steel to its production last year,
although not particularly in Brazil. Output in
its home country actually fell slightly, from
4.87 million tonnes to 4.84 million tonnes.
But after losing out to Ternium in its attempt
to buy a major participation in Usiminas, CSN
acquired on January 31 last year Stahlwerk
Thringen (SWT), a 1.1 million tpy structural
section mill in Germany. With the 812,000
tonnes of beam blank produced at the plant
between February and December, the
Brazilian companys consolidated crude steel
output reached 5.65 million tonnes in 2012.
Altos Hornos de Mexico (Ahmsa) and
Deacero, the largest producers in Mexico
together with ArcelorMittal and Ternium,
reported crude steel output rises too.
Ahmsas production increased from 3.80
million tonnes to 3.87 million tonnes, while
Deaceros went up to 2.97 million tonnes
from 2.84 million tonnes.
Challenging market
Not everything was good news in Latin
America, however. While it is true that most
of these companies managed to lift their
output, high production costs and low sales
prices amid tough competition from steel
imports continued to affect them financially.
Gerdau, the biggest steelmaker in Latin
America and number one in long steel in all
the Americas, saw its earnings before
interest, taxes, depreciation and
amortisation (Ebitda) falling by 10% last year,
to 4.17 billion Reais ($1.93 billion), while its
net profit dropped by 29%. Its crude steel
output went down as well, to 18.92 million
tonnes from 19.62 million tonnes in 2011.
Usiminas was hit by a reduction in gross
profit and higher financial expenses,
reporting a 531 million Reais ($246 million)
net loss for 2012. This alone would be bad
news for the industry, but it was in fact even
worse as poor results were also reported by
Ternium and CSN. The first one suffered a
year-on-year decrease of $462.8 million in
its net profit, mainly due to a $363.9 million
loss related to its investment in Usiminas.
And CSN recorded a net loss of 481 million
Reais ($223 million), primarily as a
consequence of the depreciation of the
shares it owns in its rival 14.13% of common
shares and 20.69% of preferential shares.
SMS group
Regional reports
Latin America is expected to see rising steel demand, but it must battle against rising imports
In Mexico, Ahmsa reported a 4% decrease

in its sales revenues because of an increasing
volume of steel imports arriving in the
country.
Looking ahead to the rest of 2013, there are
reasons to be pessimistic and optimistic at
the same time. Pessimistic, because the first
months of the year did not show signals of a
recovery in the region. Quite the contrary:
exports of finished steel products from China
to Latin America rose by 20% between
January and April this year, to 1.41 million
tonnes, and first-quarter crude steel output
fell by 11% in the case of Gerdau and by 13%
for CSN. Usiminas financial results were
better year-on-year in January-March as
part of its turnaround process, but the
companys crude steel output was stable at
1.66 million tonnes.
ultimately be able to produce 1.5 million tpy

of crude steel and 1 million tpy of long steel
products. The plant will initially add 550,000
tpy of steelmaking capacity.
Finally, Venezuelas state-owned
steelmaker Sidor has been working to recover
its crude steel output after registering a big
drop in 2012, to 1.72 million tonnes, on the
back of labour conflicts, shortages of raw
materials and a delay in investments.
Production totalled 606,473 tonnes from
January to April, and 191,025 tonnes in May,
the highest monthly level since August 2011.
If it continues that way, Sidor will probably
get back in to Metal Bulletins Top
Steelmakers list, where it appeared in last
years edition with an output of 2.45 million
tonnes in 2011.
Juan Weik, So Paulo, Brazil
Demand expected to rise
Middle East aims for

self-sufficiency
The upbeat tone comes from the fact that

apparent steel consumption is expected to
increase this year in the region, to 65.7
million tonnes from 64.6 million tonnes in
2012. And most of the main regional
steelmakers have been developing crude
steel expansion projects.
This is the case for CSN, which plans to
commission a 500,000-tpy long steel
mini-mill in Brazils Rio de Janeiro state in
August. In Mexico, Ahmsa has recently
concluded its $1.5 billion Fnix project,
which includes a 1.2 million tpy electric arc
furnace. Installed crude steel capacity will
now go up to 4.75 million tpy from the
previous 3.5 million tpy.
Deacero has also just commissioned the
first stage of a greenfield mini-mill that will
Turkey
Turkey ranked the 8th biggest producer in
2012, with a total of 35.885 million tonnes of
crude steel output. But the countrys slab
production declined by 9% in the year
compared with 2011. The main reasons for
this decline include the shutdown of MMK
Metallurgys EAF, continuing imports, and
low demand from the countrys export
markets.
Turkeys billet production increased by
10.9% in 2012, thanks to strong demand from
export markets. For 2013, the country aims to
produce 36.5 million tonnes of crude steel,
according to the Turkish Steel Producers
Association (TCUD).
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Regional reports
UAE
The UAE is becoming more self-sufficient in
steel, while the countrys producers are
increasing their production capacities and
range of products. Emirates Steel Industries
increased its crude steel output to 3.48 million
tonnes in 2012, from 2011s 3.0 million tonnes.
The second phase of expansion brought it up
to 3.5 million tpy production capacity, for
rebar and heavy sections, completed in 2012.
The phase-three project involves building a
1.7 million tpy meltshop and a 1.6 million tpy
hot strip mill, planned to be completed in 30
months time.
The UAE has 5% import duty on non-GCC
rebar, the most consumed steel product in the
country, although facilities with cutting and
bending equipment are exempt from the
duty. However, UAE customs have started to
implement stricter controls, and it is believed
that all imports are set to have a 5% duty
imposed. Such an implementation of import
duty will reduce imports from Turkey and
increase capacity utilisation of local mills,
market participants believe.
The UAE is no longer experiencing the sort of
construction boom that it had in 2004-2008.
However, there are several projects with
construction going on, and new ones are
expected to be announced by the end of 2013,
Dubai steel traders note. The worlds tallest
man-made structure, at 829.8 metres, Burj
Khalifa stands as a symbol of the earlier
construction boom in Dubai.
Qatar
Qatar Steel is also becoming a more important
player in Gulf Co-operation Council (GCC)
nations. The company has an annual
production capacity of 1,500,000 tpy of rebar
at Doha, Qatar, and 300,000 tpy of rebar at its
Dubai facility. The company also has 240,000
tpy wire rod production capacity at its Qatar
facility, and plans to increase it to 390,000 tpy
by 2014. As UAE may impose 5% duty on all
non-GCC rebar imports, the companys share
of the UAE market is getting bigger.
Qatar is also experiencing a construction
boom. The FIFA World Cup will be organised in
Qatar in 2020. Market analysts say this is
expected to increase steel consumption by
over 100% in the coming years.
Bahrain
Located in Bahrain and Saudi Arabia, Sulb is a
joint venture between Foulath (51%) and
Japans Yamato Kogyo (49%). The companys
Bahrain works has an annual medium and
heavy sections production capacity of 4.1
million tonnes and also produces 1.5 million
tpy of DRI. The companys Saudi SULB division

has 600,000 tpy of medium- and heavy
sections capacity.
Having started production in 2012, Sulb has
the advantages of a local supplier in Bahrain
such as proximity to its customers, an
advantage over any importer competitor, Sulb
commercial manager Rudi Clayton said at the
Middle East Iron & Steel conference in
December in Dubai. Sulbs portfolio includes
beams, channels and equal angles. As
demand for sections grows in the GCC, the
company has further investment plans to
widen its portfolio to sheet piles.
Iraq
Iraq is in the reconstruction phase after the
war, and it is one of the biggest steel
consuming markets in the Middle East. Hatch
Beddows forecast in 2012 that Iraq will have
the biggest growth in the Middle East & North
Africa region. The country has several steel
producers, and ongoing investments.
A Turkish market player noted that Turkish
exports to Iraq are expected to almost double
in 2013, as Turkey has several advantages such
as proximity, and cultural and traditional links
with the country.
Turkish investors have several projects in
Iraq as well. Turkey exported 106,058 tonnes
of rebar to Iraq in April 2013 according to the
Turkish Statistical Institute (TUIK). The export
tonnage in April 2012 was 93,840 tonnes, and
559,975 in the whole of 2010.
Saudi Arabia
Saudi Arabian steel production and demand
are strong thanks to government-funded
infrastructure projects, as well as private
sector construction investments. The country
invested $80 billion in 2009 in infrastructure
and public sector building, and plans to
spend $385 billion between 2011 and 2015,
according to Saudi media.
The countrys biggest steel producer is
Hadeed, the state-owned producer with an
annual production capacity of 6 million tpy.
The companys product portfolio includes
rebar, hot-rolled coil, cold-rolled coil,
hot-dipped galvanized coil and plate. It
mostly sells its long products in the local
market, while flat-rolled are exported as
well.
Saudi Arabian traders note that demand is
strong in the country, especially for rebar, and
it is not expected to decline for at least three
years. An executive of a Saudi Arabian tube
and pipe user informed Steel First that
declining prices do not affect demand much,
as projects continue. The Saudi government
increased budgets on infrastructure during
the Arab Spring in early 2011 in order to boost
the economy and avoid possible unrest. The
Danieli
Its biggest producer group, Erdemir, ranks

45th in this years top steelmakers table.
Heavy sections have become an important part

of Emirates Steels growing range of products
countrys economy remains mostly

oil-dependent, being the worlds biggest oil
producer.
Saudi Basic Industries Corporation (Sabic)
plans to build two steel plants on Saudi
Arabias Gulf coast for its affiliate Hadeed at a
combined cost of 16 billion riyal ($4.25 billion),
it said on June 8. One plant in Jubail will have
processing capacity of 1.5 million tpy of pipe
products and the other in Rabigh will make 1
million tpy of CR and galvanized products.
The company expects commercial
operations to begin at both by the fourth
quarter of 2018.
The Middle East region experienced a huge
construction boom in the early 2000s, but the
financial crisis of 2008 and the Arab Spring of
2011 slowed growth in the region. Qatar and
Saudi Arabia are still continuing huge
investments, but the UAE, especially Dubai, is
no longer a big steel consumer. Iraq stands as
a promising market due to reconstruction
activities.
GCC members sometimes talk about uniting
as steel producers to be more competitive
against imports, but no action has been taken
so far. The Arab Iron and Steel Union (AISU)
reported on 27th May: It is expected that
steel demand will grow in the Arab countries
until 2015 and will reach more than 50 million
tonnes. Given the current planned projects,
production of Arab countries will be in the
region of 35 million tonnes by 2015 to which
there will also be a need for importing about
15 million tonnes.
Serife Durmus, Bursa, Turkey
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Historical review
Steels long march

In this centenary year of Metal Bulletin, Focus looks back at how the global
steel industry has evolved commercially since steel began to be a
mass-produced commodity in the 19th century
Steel industry timeline
A selection of important developments
Pre-1914
1900 World crude steel production is 28.3

million tonnes.
1901 Union of several JP Morgan companies
with Carnegie Steel to form US Steel
Corporation, initially producing
two-thirds of US steel.
1901 Sumitomo begins steelmaking in
Osaka, Japan.
1901 Joo Gerdau and his son Hugo set up
the Pontas de Paris nail factory in Porte
Alegre, Brazil.
1901 Start of steelmaking at Yawata Steel
Works, Japan, later merged into
Nippon Steel.
1905 Kobe Steel Works founded in Japan by
trading company Suzuki Shoten.
1906 World crude steel production reaches
1907 Tata Steel established in India.
1911 Arbed founded in Luxembourg.
1918-1945
1918 Koninklijke Nederlandsche Hoogovens

formed in the Netherlands, with the
first blast furnace starting in 1924.
1931 Novolipetsk Steel (NLMK) founded in
Russia.
1932 Magnetogorsk Iron & Steel starts up in
Russia.
1934 Japan Iron & Steel formed through
merger of Yawata Steel, Wanishi Iron
Works, Kamaishi Mines, Mitsubishi
Iron, Fuji Steel, Kyushu Steel and Toyo
Steel.
1934 August Thyssen-Htte AG is formed as
operating company for Vereinigte
Stahlwerke and its five iron and
steelworks around Duisburg, Germany.
1939 Hoogovens starts steelmaking, using
open hearth furnaces.
1943 Tangshan Iron & Steel Group
(Tangsteel) founded in China.
1945 Techint Group set up by Agostino Rocca
in Argentina.
Many epithets have been applied to the 20th

century, but the Steel Age is one of the most
appropriate, as it was during this period that
steel changed from a valuable material in its
commercial infancy to a 1 billion tonne-plus
commodity at the heart of construction,
transportation, engineering and much of the
worlds infrastructure.
Steel has a surprisingly long history. It seems to
have been discovered soon after the iron age
started in the second millennium BC, and good
quality steels were being produced in small
quantities in the second and third centuries BC by
Indian and Chinese craftsmen, for example.
But it was the advances of the 18th and 19th
centuries which brought on the Industrial
Revolution, starting in Britain, and which in turn
encouraged further innovation in the
mass-production and uses of steel (see Focus 11
February 2013, Evolution and revolution).
Among the main advances were the Bessemer
process patented in 1856 and the open-hearth
process developed by Pierre-Emil Martin in the
1860s using the regenerative furnace technology
of Carl Wilhelm Siemens.
At the start of the 18th century, iron was the
dominant metal, but by the early 20th century,
steel had taken its place and was about to
undergo a further great expansion which
continues to this day. An increasing
understanding of the chemistry and metallurgy
of steels in the 20th century has led to the
development of thousands of steel alloys, with
finely customised properties.
Several major steelmakers today can trace their
origins to companies established back in the 19th
century, and sometimes much earlier. German
platemaker Dillinger Htte, for example,
originates in an iron foundry set up in 1685 in
Dillingen, with the company rolling its first steel
plate in 1804. It is the oldest joint stock company
in Germany.
Two other pillars of Germanys industry,
Thyssen and Krupp, also ventured into steel in
the 19th century. Friedrich Krupp (1787-1826) and
two partners started up a cast steel plant in 1811,
from which he made tanners tools, coining dies
and coin blanks. His son Alfred, as sole
proprietor, expanded the steel business in the
mid-19th century into railway products such as
axles, springs and seamless tyres, plus artillery
products. The companys steelmaking was made
Andrew Carnegie (1835-1919) built up the US steel

industry to the worlds largest in the 19th century
profitable by an early introduction of the recent

technological breakthroughs in mass production.
In 1871, August Thyssen (1842-1926) started up
an iron strip rolling company, Thyssen & Co, with
his father as partner. In 1891, August Thyssen and
his brother Joseph acquired full control of a coal
mine near Duisburg, Gewerkschaft Deutscher
Kaiser, and established an adjacent steelworks of
the same name which started up shortly after.
This was the start of his extensive
implementation of vertical integration, which
included various steel processing, engineering
and shipbuilding operations.
American boom
Steel was also becoming a booming business in
the USA in the 19th century. The Midwest became
the focus of steel and related heavy industries,
owing to the extensive iron ore deposits around
Lake Superior, the coal seams in Pennsylvania
and the access to cheap water transportation
around the Great Lakes. The end of the American
Civil War in 1865 started an industrial expansion
which quickly made the US economy the worlds
largest. Steel was at the heart of this expansion,
as it gradually replaced iron in construction and
shipbuilding. It was also vital for the railways that
were opening up continents.

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Historical review
1945-1970
1948 Gerdau starts steelmaking with a

scrap-based mill, Usina Farrapos, in
Porto Alegre, Brazil.
1948 Ansteel established in China, from
Anshan Ironworks and Shouwa
Steelworks.
1950 Japan Iron & Steel dissolved; Fuji Steel
formed from assets.
1951 France, West Germany, Italy, Belgium,
Netherlands and Luxemburg form the
European Coal & Steel Community, a
forerunner of the European Union.
1953 August Thyssen-Htte AG, liquidated
after the Second World War, is
re-formed in order to put the largely
dismantled Thyssen iron and steel
works back into operation.
1953 Hyundai Steel established as Korea
Heavy Industry Corporation.
1954 Hindustan Steel Pvt Ltd set up in India,
later incorporated into SAIL.
1955 Nuclear Corporation of America formed
from REO and Nuclear Consultants.
1955 First steel produced at Cherepovets
Steel Mill, Russia, now Severstal.
1958 Wuhan Iron & Steel Group (WISCO)
founded in China.
1960s August Thyssen-Htte AG becomes
Europes biggest crude steel producer
by mid-decade.
1967 British Steel Corp formed as a stateowned conglomeration of 14 UK steel
producers.
1967 Foundation of World Steel Association,
as the International Iron & Steel
Institute.
1968 Pohang Iron & Steel (Posco)
established in South Korea.
1970 Nippon Steel Corp formed from merger
of Yawata Steel and Fuji Steel.
In the USA, Scottish-born Andrew Carnegie

(1835-1919) was the main force behind the steel
boom. He founded the Carnegie Steel Company
in 1870, which is said to have become the largest
and most profitable enterprise in the world by
the 1890s. Between 1880 and 1900, US steel
production increased from 1.25 million tonnes to
over 10 million tonnes, out of total world steel
output in 1900 of under 30 million tonnes.
In this period, there were several firsts for
steel. The Brooklyn Bridge, New York, was the
first steel cable suspension bridge (and the
longest suspension bridge in the world) when it
opened in 1883. The worlds first steel-framed
skyscraper, the 10-storey Home Insurance
Building in Chicago, was built in 1884-85. The
first major structure built entirely of steel was
the Forth Bridge in Scotland, completed in 1890.
At the start of the 20th century, consolidation
made US steel production even more dominant.
In 1901, a group led by J P Morgan and Elbert H
Gary bought out Carnegie Steel and combined it
with their own holdings in the Federal Steel
Company, to form US Steel Corporation. At the
time, it was the largest business enterprise ever
launched with a capitalization of $1.4 billion,
and made two-thirds of the steel in the USA in
its first year.
The first decade of the 20th century was an
auspicious one for steel enterprises, with several
other now-prominent steelmakers getting
under way. In Japan, 1901 saw the start of
steelmaking by Sumitomo in Osaka and by
Yawata Steel, which later became the nucleus of
Nippon Steel. Although Japan became one of
the great steel powers of the second half of the
20th century, its industrialisation originally
lagged far behind the USA and Europe. This was
not helped by its paucity of mineral deposits,

especially iron ore and coking coal.
Yawata Steel started in 1901 with a modest
target of 60,000 tonnes. Another stalwart of
Japans metals sector, Kobe Steel, started in
1905. Yawatas production increased to 200,000
tonnes by 1913, which was 85% of the countrys
total but under 30% of that needed by its
growing shipbuilding and munitions industries.
Several steelmakers today originated in
companies that processed steel or
manufactured steel items, before integrating
upstream into steelmaking. For example, 1901
also saw the foundation of the Gerdau group in
Brazil, when Joo Gerdau and his son Hugo
established a nail factory in Porto Alegre, Rio
Grande do Sul state. The familys businesses
gradually expanded, and eventually
steelmaking was commissioned in 1948 with a
scrap-based electric furnace, Usina Farrapos, in
Porto Alegre.
Indias first steelmaking enterprise, Tata Iron &
Steel, was founded in 1907 with construction
starting shortly after at Sakchi. The first steel
ingot was rolled in 1912. From the start, the
works was conceived as being integrated with
its raw materials, with the company acquiring
coal mines, iron ore mines and quarries in
neighbouring states.
Going electric
Around the turn of the 20th century, Paul Hroult
in France was developing the electric arc furnace
for making steel from scrap. This was
commercialised in the USA from 1906, but it
remained a very minor sector of the industry for
a long time. It received a boost from the Second
World War and its need for a rapid expansion
1970-1990
Voestalpine
1971 Nuclear Corporation of America

changes name to Nucor and focuses on
steelmaking.
1972 Hoogovens of the Netherlands and
Hoesch of Germany merge to form
Estel. They demerge ten years later.
1973 Posco starts production in Pohang,
South Korea.
1973 Formation of Steel Authority of India
Ltd (SAIL) with overall responsibility for
seven steel plants.
1975 Nippon Steel becomes worlds largest
steelmaker.
The LD converter launched at Voest in Austria in 1952 speeded up steelmaking by around ten-fold
Coil-Tainer Limited

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Historical review
1976 Lakshmi N Mittal establishes PT Ispat

Indo in Indonesia.
1978 Baoshan Iron & Steel (Baosteel) formed
in Shanghai, China.
1978 Incheon Iron & Steel/Incheon Heavy
Industry Co incorporated into Hyundai
Group.
1980s Fried. Krupp GmbH in Germany spins

off all its operating activities to become
a pure management holding company.
1980 Gerdau begins international
expansion with acquisition of Laisa in
Uruguay.
1983 Completion of Poscos Pohang
steelworks.
1987 First phase of construction of Poscos
Gwangyang works completed.
1988 UK government privatises British Steel.
1989 Nucor starts first thin-slab casting
mini-mill, at Crawfordsville, USA.
1989 Gerdau enters North America with
acquisition of Courtice Steel in Canada.
1992 Completion of Poscos Gwangyang
steelworks.
1992 Merger of Fried. Krupp with Hoesch in
Germany to form Fried. Krupp AG
Hoesch-Krupp.
1992 Last open hearth furnaces in USA
closed.
1992 Russian scientists and engineers
establish EvrazMetall to trade steel
products and supply raw materials to
Russian mills.
1993 JSC Severstal officially registered in
Russia.
1993 Maanshan Iron & Steel established in
China.
1993 Last open hearth furnace in Europe (in
Eastern Germany) is closed.
1996 Ispat International and Ispat Shipping
set up in the UK.
1996 China produces 101.24 million tonnes,
and becomes the worlds largest
steelmaker ahead of Japan and the
USA.
1997 Flat-rolled carbon steel activities of
Thyssen and Krupp combine to form
Thyssen Krupp Stahl AG in Germany.
1999 Full merger of Thyssen and Krupp to
form ThyssenKrupp AG.
1999 British Steel and Hoogovens merge to
form Corus.
1999 Gerdau enters the USA with control of
Ameristeel.
2000s
2000 Privatisation of Posco completed.

2001 Freestanding independent public
company US Steel Corp spun off from
diversified USX Corp.
2002 Scrap exports pass 60 million tonnes.
Nucor
1990s
Nucor revolutionised the sector by introducing thin-slab casting mini-mills
of special steels, but its main growth was from

the 1960s with the development of the
mini-mill concept.
Global steel production surpassed 50 million
tonnes in 1906, and subsequently topped 100
million tonnes in 1927. The 20th centurys two
world wars had a big effect on the steel sector.
Along with many other industries, it was
nationalised in many countries in order to meet
the demands of the military, which relied
heavily on steel-based weapons and
transportation, including innovations such as
the tank in the First World War.
The early 20th century saw a much better
understanding of the metallurgy of steel alloys,
using techniques such as microscopy, and the
development and use of special alloys
increased. In 1912, researchers Strauss and
Maurer in Germany, and Brearley in the UK,
patented corrosion-resistant grades with
additions of chromium, resulting in the
best-known alloy, stainless steel.
Prior to this, in 1908, the Friedrich Krupp
Germania shipyard had launched a 366-tonne
yacht, the Germania, with a hull made from
chrome-nickel steel. A stainless steel car
appeared rather later, in 1936, created by
Allegheny Ludlum Steel and the Ford Motor
Company, but this remained a novelty rather

than an automotive breakthrough.
The open-hearth process became the
dominant steelmaking technology in the first
half of the 20th century, gradually replacing the
Bessemer process. Although it was slower, this
was also an advantage, as metallurgists had
time to analyse and control the metal quality,
resulting in superior and more reproducible
grades.
After the First World War, the newly-created
Soviet Union joined the industrialisation race,
which included the creation of several large
steelworks to take advantage of its iron ore and
coal resources. Novolipetsk Steel (NLMK) was
founded in 1931, while Magnetogorsk Iron &
Steel (MMK) was completed the following year
near the iron ore deposits east of the Urals. In
this remote location, it had to be accompanied
by its own purpose-built city. However, its
remoteness was vital during the Second World
War when it was able to maintain steel
production especially armour plate
uninterrupted.
The worlds steel sector grew rapidly in the
1920s, reaching an output of over 120 million
tonnes in 1929. Then came the Great Crash, and
production slumped to a low of 50.7 million
e
ib
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bs ow
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Historical review
tonnes in 1932. But recovery was remarkably fast

as well, with total crude steel surging to a record
136 million tonnes only five years later in 1937.
In Japan, the government was determined to
modernise its relatively backward steel industry,
and in 1934 merged the Imperial Works at
Yawata with six other private steelmakers to
form Japan Iron & Steel, about 80%
government-owned. It then underwent a big
expansion, with most of its coal and iron ore
being supplied from Japanese-controlled Korea
and Manchuria. By 1939, Japan had become the
fifth largest steelmaker, with output of 5.8
million tonnes.
Postwar expansion
The Second World War not surprisingly boosted
steel output in major industrialised countries,
with global crude production peaking at nearly
160 million tonnes in 1943. Japans wartime
production peaked at 12 million tonnes, but its
industry also suffered considerable destruction.
US Steel recovered from the Depression, aided by
surging wartime demand followed by the
postwar boom: its revenues more than
quintupled from 1938 to exceed $3.5 billion in
1951.
The postwar world needed huge amounts of
steel for reconstruction. With the new alliances
formed, Japan Iron & Steel was now rebuilt from
scratch with the close cooperation and financial
support of the USA. The resulting plants were
larger, more integrated and the most advanced
in the world, producing quality steel at low
prices, aided by the low labour costs.
Japan Iron & Steel was broken up into four
private companies in 1950 in order to promote
competition, the largest being Yawata Steel. In
the 1960s, growth in Japans steel industry

averaged 25% annually, boosted by cars,
shipbuilding and construction. Yawata Steel and
Fuji Steel recombined to form Nippon Steel in
1970, which in the early part of the decade
reached a crude steel capacity of 47 million tpy.
In 1975 it became the worlds biggest steelmaker,
overtaking US Steel.
This period also saw the beginnings of
large-scale steelmaking in China and South
Korea.
The post-war steel world was marked by
fundamental technological developments that
were to change the whole sector. Continuous
casting, for example, started to be used
commercially, and gradually became the
standard so that over 95% of steel was produced
this way in 2012, according to the World Steel
Association.
Linz-Donawitz steelmaking, using pure
oxygen blown into molten iron plus scrap, was
introduced in 1952 at Voest in Austria, and has
now almost completely displaced the
open-hearth process in integrated steelmaking.
Nearly 70% of global steel was made using basic
oxygen converters in 2012.
The other principal development was the rise
of the mini-mill to account for about 30% of
global production, and a considerably higher
proportion in many countries such as the USA.
Although electric arc furnaces have been used
for steelmaking for most of the 20th century, they
remained a niche sector for a long time. In 1964,
entrepreneur Jerry Heffernan created Lake
Ontario Steel Co (Lasco) near Toronto which
combined electric steelmaking with continuous
casting. This has been described by some as the
worlds first mini-mill, if this is defined as
SMS GROUP/Baosteel
2002 Arcelor created by merger of Arbed

(Luxembourg), Aceralia (Spain) and
Usinor (France).
2002 Tenaris, constituted in Luxembourg,
becomes the holding company for
tubemaking in the Techint Group.
2002 Global iron ore exports reach 534
million tonnes.
2003 Nippon Steel & Sumikin Stainless Steel
Corp formed as independent stainless
business in Japan.
2003 JFE Steel formed in Japan by merger of
Kawasaki Steel and NKK.
2003 Global iron ore production reaches 1.16
billion tonnes.
2004 Mittal Steel formed from merger of
Ispat International, LNM Holdings and
International Steel Group.
2004 World crude steel production surpasses
1 billion tonnes (1,071.36 million
tonnes).
2005 Techint forms Ternium steelmaking
group from Hylsa in Mexico, Siderar in
Argentina and Sidor in Venezuela.
2006 In China, Tangsteel merges with
Xuanhua I&S and Chengde I&S.
2006 INI Steel in South Korea changes name
to Hyundai Steel.
2007 Completion of merger of Mittal Steel
and Arcelor to form ArcelorMittal, with
over 100 million tpy capacity, the
worlds largest steelmaker.
2007 Tata Steel acquires Corus.
2008 Tangsteel and Hansteel groups merge
to form Hebei Iron & Steel, the largest
steelmaker in China and the second
largest in the world. It comprises seven
steel companies.
2008 Steel contracts begin trading on the
London Metal Exchange.
2008 Global ferrous scrap exports reach 101.3
million tonnes.
2010 Global iron ore exports pass 1 billion
tonnes (1.050 billion tonnes).
2010 World apparent finished steel use per
capita reaches 202.7 kg.
2011 Aperam is spun off from ArcelorMittal
as independent stainless business.
2011 Russias Evraz achieves premium
listing on LSE and becomes a
constituent of FTSE 100 index.
1.517 billion tonnes, of which Chinas
share is 702 million tonnes.
2012 Nippon Steel & Sumitomo Metal Corp
formed in Japan from merger of the
two companies, with capacity over 46
million tpy.
2013 Outokumpu takes over ThyssenKrupps
stainless subsidiary Inoxum, to form
company with 40% share of Europes
stainless and high performance alloys
market, and 12% of world market.
Chinas output has risen from over 100 million tpy in 1996 to about one half of the world total

Historical review
electric steelmaking with 100% continuous

casting and no ingot casting back-up.
Meanwhile, in Europe, German entrepreneur
Willy Korf took a similar approach and set up a
mini-mill in Kehl, Germany, in 1968, which is
now Badische Stahlwerke (BSW). Problems over
local scrap supply prompted him to cross the
Atlantic and set up another mini-mill operation,
Georgetown Steel in South Carolina, in 1969.
In order to make high-quality low-residual
steels, Korf subsequently built a Midland Ross
Experimental (Midrex) plant in 1971 in order to
supply the mill with a high proportion of direct
reduced iron. This was the second DRI plant in
North America, the first being at Oregon Steel,
and started another trend with the steady rise in
DRI as an alternative iron feedstock especially in
regions rich in gas or coal, but poor in scrap.
By 1975, there were about 40 mini-mills in North
America, producing about 6 million tpy of steel.
Although they were mainly confined to
commodity long products such as rebar, this
eventually widened to higher-value flat-rolled
products. In 1969 the Nuclear Corporation of
America set up a mini-mill in Darlington, South
Carolina, in order to secure steel for its joistmaking operations. The company changed its
name to Nucor in 1971 and its president, Ken
Iverson, decided to focus on steelmaking, while
introducing the most advanced technologies
available.
A big leap forward was the introduction of
thin-slab casting in 1989 at Nucors
Crawfordsville, Indiana, mill, using Siemens
compact strip production technology. Further
thin-slab casting plants followed, from Nucor
and others, and mini-mills were now able to
make virtually any steel product available from
integrated mills.
In spite of these successes, the 1970s-1990s
period were tough ones for much of the steel
sector, with demand in developed economies
levelling out, along with prices and profitability.
One answer seemed to be to create bigger
companies and international groups with greater
efficiencies and greater pricing power in the
market. In comparison with other major
industries such as oil, automotive or
particularly pertinent to steel iron ore, the steel
sector was extremely fragmented.
This has been the particular focus of steel
entrepreneur Lakshmi N Mittal, who started out
by creating a greenfield mini-mill in Indonesia,
PT Ispat Indo, in 1975. His Mittal Steel became the
first truly global steelmaker with a series of
acquisitions, including Siderurgica del Balsas
(Mexico) in 1992, Sidbec (Canada) in 1994, Karmet
(Kazakhstan) and Hamburger Stahlwerke
(Germany) in 1995, Thyssen Duisburg (Germany)
in 1997, Inland Steel (USA) in 1998, Unimetal
(France) in 1999, Sidex (Romania) and Annaba
ARCELORMITTAL
Mini-mills diversify
Lakshmi N Mittal created the first global

steelmaker via an extensive series of
acquisitions, operating in 60 countries
(Algeria) in 2001, Nova Hut (Czech Republic) in

2003, PHS (Poland) and Iscor (South Africa) in
2004, International Steel Group (USA) and
Kryvorizhstal (Ukraine) in 2006, among others.
The push to consolidate was taken up by other
producers. In another major move, Arbed of
Luxembourg, Aceralia of Spain and Usinor of
France combined to form Arcelor in 2002, of
comparable size to Mittal Steel as one of the two
largest steelmakers. Other notable consolidations
were Germanys Thyssen and Krupp groups fully
combining in 1999, and British Steel and
Hoogovens merging to form Corus in the same
year.
The biggest move of all came when Mittals bid
to combine with Arcelor succeeded, forming
ArcelorMittal in 2007 by some way the largest
steelmaker with over 100 million tpy of capacity.
Meanwhile, Kawasaki and NKK merged to form
JFE Steel in Japan in 2003, while the Chinese
government was (and still is) keen to encourage
consolidation among its fragmented industry,
which had become the worlds largest in 1996
with over 100 million tonnes output and has
since soared by seven-fold to comprise about half
of world crude steel production in 2013.
Baoshan Iron & Steel (Baosteel) was set up as a
state-owned flagship in China in 1978, and has
since absorbed most of the nearby steelmakers
around Shanghai, creating one of the current top
four steelmakers. In 2008, the Tangsteel and
Hansteel groups themselves the result of
previous mergers combined to form Hebei Iron
& Steel, now Chinas largest steelmaker and the
worlds second largest.
One result of all this consolidation has been

as intended a greater control over output and a
better matching with market conditions. This was
particularly noticeable after the financial crisis of
2008-09, when steel output was cut back
significantly in some regions, instead of
numerous companies trying to maintain output
and engaging in a price-cutting war.
Many analysts believe that consolidation will
have to continue in order to maximise efficiency
and survive the downturns in a globallyinterconnected industry. This includes a
continuing focus on vertical integration whereby
steelmakers try to gain control of as much raw
materials as feasible, whether it is iron ore, scrap
or DRI. ArcelorMittal, for example, is among the
five largest producers of iron ore and
metallurgical coal, and aims to mine 84 million
tonnes of iron ore by 2015.
The most recent mergers include Nippon Steel
and Sumitomo Metals combining last year to form
an entity of 46 million tpy capacity, while further
consolidation in the stainless sector resulted in
Outokumpu taking over ThyssenKrupps Inoxum
earlier this year.
Soaring productivity
Greater efficiency is shown not only by a better
use of raw materials and energy aided by leaps
forward in computer technology but also by the
manpower needed to produce a tonne of steel.
This is perhaps the starkest illustration of how the
steel industry has modernised. US steelmaking,
for example, saw labour productivity fall from 10.1
man-hours per finished ton in 1980 to an average
of 2 man-hours per ton in 2010 with many mills
achieving under one man-hour, according to the
American Iron and Steel Institute (AISI).
Germanys output of crude steel was 43.8
million tonnes in 1980 and almost the same in
2012 at 42.7 millions tonnes, but steel sector
employment fell from 288,000 in 1980 to 88,000
last year. This means that productivity rose by
218% from 152 tpy per employee to 484 tpy per
employee over this period.
In the period from 1974 to 1999, the worlds steel
industry reduced its total employment by over 1.5
million, while increasing total output and
building more mills. It is unlikely that the drive to
greater efficiency has concluded, and if past
experience is a guide, the current poor market
conditions in much of the world are likely to
increase the focus on innovation and effective
organisation.
Sources
Sources for this article include:
Individual steel companies
The White Book of Steel (World Steel Association,
2012)
Gales Directory of Company Histories
The Minimill Story (John Stubbles, AISTech 2006)
World Steel Association
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YES, WE CAN TRADE THEM ALL.

Top steelmakers 2012

The new world ranking by production

World steel industry

How global steel is changing in terms of output,

Around the regions

Key drivers and developments in the steel

Middle East aims for self-sufficiency

Steels long march

Mixed fortunes in Asia

To mark Metal Bulletins centenary year, a

June 2013 | Top steelmakers | 3

Top steelmakers 2012

Top steelmakers in 2012

TISCO - Taiyuan Iron & Steel

Hebei Iron & Steel Group

Jiuquan Iron & Steel (Group) China

Nippon Steel & Sumitomo

Pingxiang Iron & Steel Co Ltd China

Handan Zongheng Iron

Jinxi Iron & Steel Group Co Ltd China

Baosteel Group Corp

WISCO - Wuhan Iron & Steel

Xinyu Iron & Steel Co Ltd

JSW - Jindal South West

Jiangsu Shagang Group Co Ltd China

Anshan Iron & Steel (Group) China 28.500

Tata Steel Ltd

Shandong Iron & Steel Group China

United States Steel Corp

China Steel Corp

Zenith Steel Group

Maanshan Iron & Steel Co Ltd China

Bohai Iron & Steel Group

Hebei Jingye Group

Nanjing Iron & Steel United

Kobe Steel Ltd

Fujian Sansteel (Group) Co Ltd China

Benxi Iron & Steel (Group)

Novolipetsk Iron & Steel

Mechel OAO (Mechel)

IMIDRO - Iranian Mines &

SAIL - Steel Authority of

Rizhao Steel Group

Magnitogorsk Iron &

SSAB - Svenskt Stal AB

Chongqing Iron & Steel

Shaanxi Longmen Iron

Baotou Iron and Steel

Anyang Iron & Steel Group

4 | Top steelmakers | June 2013

Steel Dynamics Inc

BlueScope Steel Ltd

Xinxing Ductile Iron Pipes Co China

Essar Steel Ltd

Icdas Celik Enerji Tersane

Ahmsa - Altos Hornos

98 102 Belorussian Steel Works

Shanxi Jincheng Steel

Lengshuijiang Iron &

100 109 JSW Ispat Steel Ltd