On our way to decarbonization, Steel is a problem. For each ton we produce, They emit two of co₂ to the atmosphere, but although We are studying alternatives further sustainableremains indispensable in a world where there are countries wrapped in a Loca Carrera for Megaconstructions. Someone must produce all that steel we need, and as is the case with the Aluminum industrythat of steel has an indisputable own name: China.
And it is something that can be seen perfectly in this graph elaborated by Visual Capitalist:
The Chinese monster. The data comes from the World Steel Association and reflect an overwhelming reality. If the world produced about 1,884.6 million tons of steel in 2024, more than half were the work of China. The rest of the countries are very, far away and, removing India with the giant Tata Steel Group that benefited from an increase in infrastructure investment in recent months, the rest of the producers are quite aligned.
That China leads this sector is not a coincidence. After the Foundation of the Popular Republic in 1949, the State considered that the production of steel was something crucial For industrialization. Domestic demand is gigantic due to the boom of both manufacturing and infrastructure and construction in general and,, although they exportown consumption is very important.
USA wants to recover land. That domain is a problem for the rest of the countries. That China produces more steel than the rest of the world together makes us depend on its product (as with the solar panels wave Rare Earth Production). The United States, another historical steel producer, does not want to lose so much land and in recent months it has started movements to recover control of its industry.
Us Steel is one of the historic steel producers who was about to be bought by the Japanese giant Nippon Steel. Joe Biden, in one of the last movements of his mandate, decided to block the purchase claiming national security motifs. This decision sent a message, but also fed ghosts from the pasttensing relationships with Japan.
Europe out of the photo. In Europe, the bastion of steel is Germany. Its production is among the highest in the world, but we will have to see for how long. As we read in The New York Times, the Airías have experienced a fall of 11.6% during the first half of 2025. In addition, despite the high technology of factories such as Tata Steel in the Netherlands, environmental regulations, the Chinese dumping and tariff hostility are pushing Europe to a situation in which he paints less and less in the photo of the steel worldwide.
HE esteem that Spain produced 11.9 million tons in 2024, assuming a 3.7% increase compared to the yearterior, but although some countries have experienced a Alcista trend in its production, demand remains high, the need to reduce emissions and imports from the EU – especially asian steel – increases pressure on internal production.
Without limit. And it’s a problem. Now, another interesting element of all this is that, although there is a steel hunger, the main producers produce … too much. According to the OECD, the excess world capacity will reach the 721 million tons in 2027. China herself is Taking measures to stop the blind expansion of your industry. For example, a production control, asking companies to only produce under a firm order or suspend the expansion of steel production capacity, decision made in August last year.
They are measures to limit overcapacity and that Your industry does not die of success Due to the low price that steel could reach worldwide, but although it seems a very local measure, taking into account its enormous production, any movement in this sense is something that has an impact on the rest of the world.
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