Yet another dismal year for the global steel industry best summarises 2015. Sagging demand is being coupled with too much supply, with China at the heart of the market imbalance through elevated exports. Subsequently operating margins at global steel producers are seeing a renewed squeeze, as steel prices have fallen faster than costs. 2015 saw the average cost for finished steel fall by 18% to US$375/tonne. This marks the fourth consecutive year of cost relief as price declines for iron ore, coal and scrap continued. However, the cost relief has been offset by plunging steel prices, which on average traded 27% lower last year. This has increased pressure on steelmakers, prompting supply restraints, with the Teesside mill (SSI) in the UK among the closure victims.
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Country report | Jan 2016
Global steel supply summary
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