Overview of steel and iron market
Deloitte CIS Research Centre
- Overview of steel and iron market
- Depreciating Russian Rouble Offsets Financial Losses of Steel-Makers — 2016
- Key contacts
In 2016 the downward trend in output and consumption that had been continuing from 2015 gave way to greater stability, with industry indicators changing by less than 2 percent:
- Steel output grew by 0.8 percent up to 1,629 million tonnes
- Steel consumption grew by 1.3 percent up to 1,600 million tonnes.
Over the first three months of 2017 saw global steel output reach 410.5 million tonnes, up 5.7 percent from the same period in 2016. In 2016 China saw an increase of 1.8 percent in domestic consumption of steel amidst the continuing incentives and growth in loans.
Driven by a decrease in government incentives, an expected gradual weakening in the demand from China will create an oversupply, forcing prices down. In 2016 steel output in Russia has grown by 0.3 percent to 69.6 million tonnes.
The apparent domestic consumption of steel dropped by 3.9 percent to 34.6 million tonnes. However, 4Q2016 saw a YoY increase of 3.7 percent as a result of the slightly improved situation in the construction industry and the Russian economy as a whole.
Depreciating Russian Rouble Offsets Financial Losses of Steel-Makers — 2016
In 2016, political and economic events have continued to have a lasting effect on the global metals market. Instability and the resulting lack of confidence can be felt both locally and internationally.
During the first five months of 2016, global steel output was 667 million tonnes, down 1 percent on the same period in 2015.