Unlike 2015, where sagging demand was coupled with too much supply, 2016 gave some hope to steel producers, particularly towards the end of the year. In China, stronger than expected manufacturing activity, accelerated capacity closures, soaring raw material costs and speculation have all led to a surge in steel prices that has had an impact worldwide. In fact, global steel producers' operating margins saw a renewed rise, as steel prices have grown faster than costs. After four consecutive years of cost reduction, higher prices (most remarkably in H2 2016) for iron ore and coal have halted the decline in costs. Finished steel costs will rise 9% in 2017 as the full impact of higher iron ore and coal prices is felt.
This report includes 2 file(s)
Global steel supply summary PDF - 685.19 KB 11 Pages, 1 Tables, 9 Figures
steel cost summary and analysis.xls XLS - 851.00 KB
This Steel Supply Summary report details key producers, production levels, costs and margins for steel assets in this country. It also analyses industry trends and themes, giving insight into future cost direction.
Industry participants, advisers and financial institutions can use this report to understand key country data in order to identify operational efficiency and competitive drives, as well as identify acquisition opportunities.
Wood Mackenzie's cost methodology is the established global industry standard, relied on by the world’s leading investment banks and mining companies to make strategic, operational and investment decisions.
Our analysts are based in the markets they analyse, working with high-quality proprietary cost databases and cost curve analyses to create consistent and reliable analysis. Our database includes over 2,450 asset analyses covering more than 1,000 companies worldwide.
Wood Mackenzie's clients include every major player in the global energy, metals and mining industries. We are recognised as a leading authority by international and national energy, metals and mining companies, leading financial institutions, governments and government agencies. We work with a range of diverse teams within our clients, from strategy and policy makers, business developers and market analysts, through to corporate finance, risk teams and investors.
Having Wood Mac analysis is table-stakes. Others are nice to have.
Analyst Metal Mining Producer
Wood Mac has the highest quality data and is demanded by our staff.
Portfolio Manager Integrated Oil Company
Others can provide data but we value the quality of the Wood Mac analysis above other sources.
As the trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, we empower clients to make better strategic decisions with objective analysis and advice. Find out more...
Country report | Mar 2017
Global steel supply summary
Have questions? Just let us know how to contact you and we will respond to you as soon as possible.