African steel industry to emerge from the global downturn with limited damage

African steel output sustained in recession. The African steel industry would emerge from the global economic downturn with only limited damage, steel consultancy Meps said yesterday. Releasing its forecast for the year, Meps said mill output this year was likely to decline by 2-million tons on the outturn last year to just above 15- million tons. This represented a reduction of 11,6% it said. By comparison, global steel production is expected to be 1,2-billion tons this year, a 9,5% reduction on the outturn in the previous 12-month period but still significantly above predictions by most pundits earlier in the year. Worldwide blast-furnace iron making is expected to be down just 5% year on year, while direct reduced iron output is likely to show a reduction of about 8%. “This indicates that scrap-based electric melting will turn out to be the main casualty in the supply of steel over the year,” Meps said , noting that significant regional differences are apparent. Mills using the blast furnace/ oxygen route in the European Union and North American Free Trade Agreement countries have made and continue to make the most significant cuts in supply. In comparison, Indian and Chinese steel makers have lifted their output of molten iron. In fact, total Asian blast furnace iron production this year is forecast to increase by 40- million tons year on year. “The steel sectors in most industrialised nations have been badly hit by the economic crisis, ” Meps said.