How leading global steel producers fared in 2024? BigMint dissects WSA data

• Global crude steel production falls by 0.8% y-o-y
  
  
• Baowu top producer, ArcelorMittal sees 5% drop in output
  
  

Despite persistent macroeconomic headwinds, including declining household purchasing power, monetary tightening, and increasing geopolitical uncertainties, global crude steel production in CY'24 demonstrated a relatively stable performance, reaching 1,882.6 million tonnes (mnt). This figure represents a marginal 0.8% decrease compared to the 1,897.9 mnt produced in CY'23, as per latest data published by the World Steel Association (WSA).

Top producers

China's Boawu Group emerged as the top global steelmaker with total production at 130.09 mnt, marginally down by 1% y-o-y from 130.77 mnt in CY'23. This decline in production is attributed to the Chinese steel industry's struggles with overcapacity, subdued domestic demand, and government efforts to regulate output.

ArcelorMittal's crude steel production in 2024 declined by 5% y-o-y to 65 mnt as compared to 68.52 mnt last year. This modest decrease was influenced by a combination of factors, including global overcapacity in the steel industry and increased imports, particularly in Europe, which put pressure on domestic production. Additionally, the company faced regional operational challenges due to weak economic growth, high logistics and energy costs, and an influx of low-cost steel imports.

Ansteel's crude steel production rose 7% y-o-y to 59.55 mnt in 2024, up from 55.89 mnt in 2023. Notably, Ansteel expanded its capacity with the acquisition of Lingyuan Steel in December 2024, boosting its annual crude steel production capacity.

Nippon Steel's crude steel output held steady at 43.64 mnt in 2024, but demand weakness persisted due to Japan's declining population and reduced exports. While the company has shown strong financial results, the sentiment around its CY'24 performance remains mixed, with cautious optimism due to the challenging global environment and some delays in expansion plans.

HBIS Group's crude steel production in 2024 increased by 2% y-o-y to 42.28 mnt from 41.34 mnt. HBIS significantly increased its export volumes, which could have driven higher production to meet international demand.

Shagang Group's crude steel output decreased by 1% y-o-y to 40.22 mnt against 40.54 mnt. This slight decline can be attributed to a combination of factors, including the stagnation of China's economy, especially its construction sector, a key consumer of steel, and increased trade restrictions that limited export opportunities. These conditions collectively led to a reduction in overall steel consumption.

Tata Steel ranked 10th among top crude steel-producing entities globally, with production reaching 31.02 mnt in 2024, a 5% y-o-y increase from 29.5 mnt in 2023. Tata Steel's production was driven by the successful commissioning of India's largest blast furnace at its Kalinganagar plant, increasing crude steel capacity from 3 mnt to 8 mnt per annum. With near 100% capacity utilisation in India, the company achieved record-high steel deliveries, capitalising on robust domestic demand fuelled by infrastructure projects, housing construction, and government initiatives.

JSW Steel Limited occupied the 12th position globally among top crude steel-producing companies, with production in India reaching 26.95 mnt, a 3% increase from 26.15 mnt the previous year. This growth was driven by the company's robust capacity utilisation, focus on operational efficiency, and strategic planning, which enabled JSW to achieve record-high output and capitalise on market opportunities.

Top Steel producing companies in 2024

Outlook

The global steel industry's outlook is mixed, with ongoing challenges like macroeconomic uncertainties, overcapacity, and fluctuating demand likely to persist, further complicated by trade tensions and high tariffs impacting global steel trade.