Despite the uncertain economic climate, steel market experts from consultancy firm MEPS International believe world crude steel output for 2002 to be 894 million tonnes – up 5% on the previous year – and 912 million tonnes for 2003.
A report on the fourth quarter of 2002 said that over the past twelve months, steelmaking has steadily expanded in comparison to the 2001 outturn. The year on year increase during the first quarter was 1.7 million tonnes – equivalent to less than 1 percent – and MEPS estimates that the escalation in the final trimester of 2002 will be 16.5 million tonnes (8.5 percent) up on the previous year's figure.
“Demand is expected to continue to grow in China, India, South Korea, Middle East and the former Soviet Union,” the report said. “These advances should more than offset any decreases in the industrialised nations.”
A significant proportion of the boost in output was thought to be the result of inventory building across the globe. Higher prices were generated by the Section 201 tariff rates in the US, and import safeguard measures in a number of other countries prompted customers to build up their stock levels ahead of price hikes.
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