A Tale of Two Industries: The Diverging Paths of Steelmakers in Developed and Developing Countries
According to the World Steel Association, from 1998 to 2007 steel production in China grew at a 14 percent compound annual rate, versus -3 percent for the United States. Over that same period, China’s share of global steel production grew from 14 percent to nearly 40 percent. China and the developing world have played an increasingly important role in the global steel industry throughout the past decade.
The diverging experience of steelmakers in developing and developed countries has been playing out gradually over the last few decades. The recent economic turmoil appears to have longer-lasting effects in developed countries than in developing countries, so that divergence is likely to accelerate. Just as the current downturn has affected world regions differently, the potential timing and trajectory of any recovery varies as well.
This whitepaper explores the effects of the recent economic turmoil in the steel industry in developed and developing countries.