World’s Top Steel Producers Are Feeling The Squeeze

The global meltdown has affected top companies all over the world. The steel industry is starting to feel the harsh effects of a souring world economy.

In the previous years, steel companies have consolidated, in order to combat a fragmented steel market. It appears that even this is no match for today’s economy.

The Prague Post in the Czech Republic has reported that two of the world’s leading steel producers were facing major cutbacks in order to survive.

ArcelorMittal  and  Evraz Vítkovice Steel are currently running at 50% capacity. The decline in steel has hit hard, especially within the last year. Both companies have been forced to dismiss hundreds of employees recently.

World crude steel production for 66 countries was 16% lower than what is was a year ago. This was conducted in the month of June — 2008 and 2009.

Only two countries showed an increase: China +6%, and Iran +9.4%.

Steel Production Report: June – 2008 & 2009*
United States  -46.9%
Italy  -43.1%
Germany  -41.1%
France  -37.9%
Ukraine  -36.8%
Japan  -33.6%
Brazil  -33.9%
Spain  -31.4%
Russia  -22.1%
South Korea  -14.4%
Turkey  -12.7%

* World Steel Production