Tianjin Xinyue Industrial and Trade Co., Ltd.
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Crude steel capacity utilization reached its highest point in five years

Jul. 09, 2018

According to the statistics of the World Steel Association, the global crude steel capacity utilization rate has reached nearly 78%. Especially since this year, the global crude steel capacity utilization rate has steadily increased. In May of this year, the global crude steel capacity utilization rate has reached 77.7%, the highest point in the past five years. Combined with the changes in global steel prices this year, this reflects the significant increase in the incentives for steel companies to increase production efficiency under existing production conditions, given the increase in steel prices and the increase in steel producers' profit.


Since 2014, the global crude steel capacity utilization rate has generally declined, reaching a minimum at the end of 2015. According to statistics, at the end of 2015, the global crude steel capacity utilization rate was only 64.9%. From a local point of view, since October 2017, the global crude steel capacity utilization rate has dropped rapidly, from 72.7% in October 2017 to 69.4% in December 2017. According to the analysis, this phenomenon is mainly caused by two reasons. On the one hand, due to seasonal factors, the operating rate of the steel mill itself has decreased. On the other hand, in the winter of 2017, the steel producing country China has issued strict environmental protection limits. The production policy has led to a decline in capacity utilization of some steel companies.


Capacity utilization and steel prices have maintained a high degree of consistency. To some extent, the capacity has optimized the supply and demand situation of the steel market, promoted the rebound of steel prices, and also led to the recovery of capacity utilization.


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