Steel market
The steel and copper industries act as a kind of indicator of the health of the global economy. Both steel and copper are used as basic materials in a wide range of other industries - for example, in the production of household appliances, cars, industrial equipment, in the construction of railway infrastructure, real estate for various purposes, and so on.
2025
Global steel production declined by 2% over the year to 1.8 billion tons
In 2025, the volume of global steel production decreased by 2% to 1.849 billion tons. This data from a report by the World Steel Association was published on January 26, 2026.
According to World Steel, the top ten steel producing countries by the end of 2025 included:
- China - 960.8 Mt (-4.4% YoY/Y)
- India - 164.9 million tons (+ 10.4%)
- USA - 82 million tons (+ 3.1%)
- Japan - 80.7 million tons (-4%)
- Russia - 67.8 million tons (-4.5%)
- South Korea - 61.9 million tons (-2.8%)
- Turkey - 38.1 million tons (+ 3.3%)
- Germany - 34.1 million tons (-8.6%)
- Brazil - 33.3 million tons (-1.6%)
- Iran- 31.8 million tons (+ 1.4%).
A key factor in the decline in smelting was the decline in steel output in China, the world's largest producer. Kirill Lysenko, an analyst at the Expert RA agency, linked this to weak demand in the real estate and construction sector, which is forming a demand for long products. He predicts a further, but slower decline in production in the PRC in 2026 - by 2-4%, to 930-940 million tons. An additional limiter of steel production growth in the PRC, according to Lysenko, is the state policy of controlling capacity and emissions.
At the same time, three countries from the top ten increased production. India showed the greatest growth (+ 10.4%). According to Kirill Lysenko, this was facilitated by the strategy for the development of industry and infrastructure and the general growth of the economy. Lysenko expects India's output to continue to grow by at least 7% in 2026. The increase in output was also recorded in the United States (+ 3.1%) and Turkey (+ 3.3%).
Production in Russia, which took fifth place, decreased by 4.5% to 67.8 million tons, which is close to the Chermet corporation's estimate of 67.4 million tons. Pavel Gamov, an expert at the Institute for Growth Economics named after P.A. Stolypin, predicts a decline of another 5% in 2026, linking this with a high key rate of 16%, which restrains investment activity. According to Severstal CEO Alexander Shevelev, to restore demand for metal products, it is necessary to reduce the rate to 12%, which is unlikely in 2026.[1]
Steel production in Russia for the year decreased by 4.6% to 67.4 million tons
In Russia, at the end of 2025, 67.4 million tons of steel and 50.3 million tons of cast iron were produced. Steel smelting decreased by 4.6% over the year, iron production decreased by 1.4%. This is evidenced by the preliminary data of the Chermet corporation, which TAdviser got acquainted with in January 2026.
The company's experts record the most significant drop in the segment of steel pipes, the production of which decreased by 20% to 10 million tons. Nevertheless, the results of the year turned out to be better than pessimistic forecasts, which suggested a decrease in steel production by more than 10%.
Alfa-Bank Boris Krasnozhenov, head of the securities market analytics department, said that production volumes in the first half of 2026 will remain at the level of 2025. According to the expert, growth is hindered by an excess of supply in the domestic market and low prices in key export destinations.
Severstal CEO Alexander Shevelev stressed that the restoration of investment activity and demand for metal in Russia is possible with a decrease in the key rate to 12%, which is unlikely in 2026. Managing Director of the NKR rating agency Dmitry Orekhov believes that demand from construction and engineering will continue to decline, albeit at a less deep pace than in the winter period of 2024-2025.
Dmitry Orekhov also indicated that the Central Bank announced the continuation of the cycle of easing monetary policy. According to the managing director of the NKR, this creates the prerequisites for a gradual recovery in demand, which may begin in the second half of 2026.
However, according to the NKR agency, it will take from five to seven years to return to the pre-crisis production volumes achieved in 2021 (77.8 million tons of steel). The company's experts believe that the industry will continue to experience pressure from sanctions restrictions and an uncertain global economic situation.[2]
2024
5 largest steel exporting countries
In 2024, the volume of global exports of steel (rolled products and semi-finished products) increased by 3.3% compared to 2023, reaching 449.2 million tons. This indicates a gradual recovery in international economic activity and a steady demand for steel products in various sectors, including construction and mechanical engineering. Such data are given in a study by the World Steel Association, the results of which TAdviser got acquainted with at the end of October 2025.
China is the leader in terms of exports, increasing supplies to 117.1 million tons (plus 24% compared to 2023). This is followed by Japan with 31.2 million tons (minus 3.1% YoY) and South Korea with 28 million tons (plus 3.7%). The European Union increased exports of steel products by 6.9% on an annualized basis - to 27.8 million tons. Turkey exported 17 million tons of steel, which is 33.8% more compared to 2023.
In general, the share of Asian countries in world exports increased, while European producers reduced the indicators: the final result was 48% and 27.8%, respectively. There is a trend towards an increase in trade in semi-finished products. In particular, in 2024, the global export of such products reached 54.6 million tons, compared with 53.1 million tons in 2023 and 44.6 million tons in 2022.
Global steel production in 2024 amounted to 1.76 billion tons, a decrease of 1% compared to the previous year. The share of exports in total production reached 25.5%, compared with 24% in 2023.
If we consider the segment of iron and steel exports, then the leadership, according to the World Trade Organization, is held by the European Union, which supplied products worth $167 billion in 2024. Next come China with a result of $89 billion and Japan with $29 billion. Russia in this list is in eighth position with an export volume of $14 billion.[3]
The world's largest steel producers. NLMK in the top three
In October 2025, TAdviser prepared an infographic on the world's largest steel producers. As part of this work, the financial statements of the companies were studied, as well as the data of the audit and consulting company "Business Profile."
The market leader is the Chinese company Baowu, which in 2024 produced 132 million tons of steel. Next are ArcelorMittal and Russian NLMK with indicators of 69 million and 17.6 million tons, respectively.
According to analysts at Business Profile, by 2024 the global steel market is characterized by fragmentation, where growth is provided by developing countries, and developed countries are stagnating. The industry's key challenges are environmental barriers, geopolitical instability and the need for technological modernization. For Russia, the transition to low-carbon technologies and diversification of export markets are critical factors, which will minimize the risks of loss of share due to the introduction of CBAM and sanctions pressure.
Despite the traditionally strong position among the largest exporters, in 2024 the volume of Russian steel exports decreased by 7.9% compared to 2023. According to Russian Steel, the country's share in world exports in 2022 was 4.5%, which is inferior to the leaders: China (17%), Japan (7.9%), the European Union (6.5%) and South Korea (6.3%). The main areas of supply remain Turkey, the countries of the Middle East and Asia, as well as North Africa, while exports to the EU are limited by sanctions.
In Asia, China retains the status of the largest producer with a volume of 1.005 billion tons at the end of 2024, although the growth rate has slowed down. India is showing steady growth in production thanks to the development of industry and infrastructure. In Europe, the EU is showing growth supported by investment in green metallurgy, while the US has cut output due to high energy costs and Asian competition, and Mexico has faced a significant downturn.[4]
Reduction of steel production in the world by 1.0% to 1.885 billion tons
Global production of unrefined steel in 2024 amounted to 1.885 billion tons, which is 1.0% less than in 2023, continuing the downward trend after the peak value of 2021 of 1.963 billion tons. The industry is on a downward trajectory, with a 3.8% drop in 2022, a marginal 0.8% increase in 2023 and a second contraction in 2024, World Steel Association figures show in July 2025.
According to DKNews, 98% of global unrefined steel production falls on 71 countries reporting to the World Steel Association, including Kazakhstan. More than half of the steel produced is used in construction and infrastructure, 16% - in mechanical engineering, 12% - in the automotive industry, 5% - in the production of transport.
China maintains a dominant position in global steel production, providing 53.3% of global output in 2024 versus 49.1% in 2014. The Celestial Empire produced just over 1 billion tons of unrefined steel, which exceeds the volume of all other countries combined.
Despite the leading position, steel production in China decreased by 2.3% in 2024, or 23.8 million tons compared to 2023. The PRC government is pursuing a policy of curbing the growth of the industry, urging companies not to produce steel without orders or confirmed payment.
Beijing has announced plans to further reduce steel output, with some experts predicting a decrease in production to 50 million tons in 2025. Such a policy is aimed at preventing overproduction and stabilizing the market.
Other Asian countries collectively accounted for 20.3% of global unrefined steel production. India ranks second with a share of 7.9%, producing 149.4 million tons. Japan is in third position with 4.5% of world production and a volume of 84 million tons.[5]
Reduction of steel consumption in Russia by 5.7% to 43.7 million tons
At the end of 2024, steel consumption in Russia amounted to about 43.7 million tons. This is 5.7% less than the result for 2023, when the figure was estimated at 46.3 million tons. Such data at the end of January 2025 was published by the mining and metallurgical company Severstal.
It is noted that the main factor in reducing demand is the high level of the key rate of the Bank of Russia, which is why there is a restriction on financing. In addition, the industry was negatively affected by the postponement of projects, mainly infrastructure and non-residential construction.
 | In general, about 43.7 million tons of steel were consumed by the Russian Federation in 2024, which is significantly lower than the capabilities of metallurgists, which amount to about 70 million tons. Given this situation, we are looking for and finding new opportunities for our clients, "says Severstal CEO Alexander Shevelev. |  |
Yakov & Partners notes that the sustainable development of the Russian steel industry remains under pressure both in monetary and physical terms, which is associated with the current geopolitical situation. One of the key drivers of growth may be the strengthening of the position of metal-intensive sectors of the economy, including mechanical engineering. At the same time, Russian metallurgy, which provides about 5% of the country's GDP, faced significant changes in the geography of exports and rapidly changing market conditions.
Taking into account the current situation, analysts predict that the growth of domestic steel consumption in Russia until 2030 will amount to about 1.2-2.7 million tons. The key consumers of metal during this period may be companies in the construction and engineering industries. In addition, significant volumes of steel will be required for large projects in the railway sector.[6]
Top 10 Steel Countries
In 2024, the global production of unrefined steel amounted to approximately 1.88 billion tons. This is 0.8% less than in 2023, when the figure was 1.9 billion tons. Such data are given in a study by the World Steel Association, the results of which were published on January 24, 2025.
The leader in steel production is: in 2024, China this country showed a result of about 1.01 billion tons, which is 1.7% less than the previous year (1.02 billion tons). In second place with a large margin is India from 149.6 million tons against 140.8 million tons in 2023: growth was recorded at 6.3%. Closes the top three, Japan in which the annual production volume decreased by 3.4% - from 87 million tons to 84 million tons.
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On the fourth line in the ranking are the United States, in which the annual volume of steel production decreased by 2.4% - from 81.4 million tons to 79.5 million tons. The fifth position is occupied by Russia with a result of 70.7 million tons against 76 million tons in 2023: the fall was at the level of 7%. In addition, the top ten countries in steel production include:
6. South Korea - 63.5 million tons (minus 4.7% compared to 2023);
7. Germany - 37.2 million tons (plus 5.2%);
8. Turkey - 36.9 million tons (plus 9.4%);
9. Brazil - 33.7 million tons (plus 5.3%);
10. Iran - 31 million tons (plus 0.8%).
It is noted that the dynamics of steel production in Russia from 2018 to 2024 is characterized by significant changes caused by both internal and external factors. The industry is affected by international sanctions, supply chain disruption and trade complexity, increased transportation costs and the inability to obtain a number of necessary components for metallurgical production.[7]
Reduction in steel smelting in Russia by 7% to 70.7 million tons
In 2024, the volume of steel smelting in Russia amounted to 70.7 million tons, which is 7% less than in 2023. Such data in January 2025 is provided by the information and analytical company Chermet Corporation.
According to the information provided, the decline continued throughout 2024, and in no month did the industry show positive dynamics. The iron and steel sector in Russia remains predominantly export-oriented, and restrictions on external supplies have had a significant impact on production. In 2022, the European Union completely banned the import of rolled steel, fittings and pipes from Russia. The United Kingdom and the United States imposed additional duties - American barrier tariffs reached 70%, which significantly hampered the supply of Russian metal products. Steel exports in 2024 fell by 22% to 14.1 million tons. The largest reduction was observed in the category of steel pipes - their supplies decreased by 41%.
According to analysts at Metals & Mining Intelligence, the use of production facilities of Russian metallurgical enterprises amounted to 85% for the full cycle and only 65% for electric steelmaking plants. In the domestic market, demand also showed a decline. In 2024, it fell by 6% and amounted to 43.7 million tons.
According to estimates, the Severstal reason was a slowdown in growth construction in and a high key rate held at Bank of Russia 21%. Mortgage growth in the country slowed down - according to data, the Frank RG volume of the mortgage market decreased by 40% and amounted to ₽4,8 trillion. Average rates on unsubsidized programs increased from 16% to 28% per annum.
The most noticeable was the reduction in rolled products by 6% to 61.8 million tons, pig iron production by 6% to 51.1 million tons, as well as pipes of all types by 5% to 12.6 million tons. Production of the raw material base also decreased. The output of coking coal amounted to 24 million tons, which is 6% less than in 2023, and iron ore production decreased by 1% to 104.9 million tons[8]
2023
Steel production growth in Russia by 5.6% to 75.8 million tons
According to the results of 2023, the volume of steel production in Russia reached 75.8 million tons, which is 5.6% higher than a year ago. This is evidenced by the data of the World Steel Association (WSA), which became known in April 2024.
By the end of 2023, steel smelting in the Russian Federation almost returned to a record level in 2021, when Russian metallurgists produced about 76 million steel.
According to WSA estimates for 2023, Russia with its indicators remains in the five largest global steel producers - it closes it. In first place with a giant margin, China followed by, and India. Japan USA The United States increased steel production last year to 80.7 million tons from 80.5 million a year earlier.
The WSA data on the return of steel smelting to its historical maximum was confirmed to Kommersant by Boris Krasnozhenov from Alfa Bank. He recalled that Russian companies in the ferrous metallurgy sector remain one of the most efficient in the world with the current cost of about $300 tons of hot-rolled steel. In his opinion, in 2024, the total volume of steel smelting is likely to remain close to the level of 2023. But major manufacturers are showing nearly 100 percent capacity utilization, he pointed out.
In February 2024, Deputy Prime Minister of Russia, head of the Ministry of Industry and Trade Denis Manturov said that steel smelting in Russia in 2023 increased by 5.3%, "thereby overcoming the negative trend in 2022." According to Manturov, Russian metallurgists have fully adapted to the new conditions that arose after the start of the Russian Federation's military special operation in Ukraine and the Western sanctions that followed it. The head of the Ministry of Industry and Trade clarified that the stabilization of the situation on the steel market is due to the diversification of the sales structure, in particular, an increase in shipments to the domestic market, including for infrastructure projects and housing construction.[9]
Steel sales growth by 7% to 46.3 million tons
According to the results of 2023, steel consumption increased by 7%, to 46.3 million tons due to construction and mechanical engineering projects. This is evidenced by Severstal data published in February 2024.
The company estimates that the construction industry contributed the most to the market dynamics, which grew by 9% year-on-year. According to Severstal experts, the main drivers of metal consumption growth in this sector remain state support for the construction of social and commercial housing, stable interest in warehouse real estate, where low vacancy rates remain, and demand for individual housing construction, including with the support of special mortgage programs.
The consumption of metal products for the construction of infrastructure facilities (+ 13%), commercial buildings (+ 9%), as well as individual housing (+ 10%) increased.
It is noted that machine-building enterprises continue to recover from the crisis of 2022, growth in 2023 amounted to 14%. Steel consumption from the automotive industry increased by 29% due to high demand for freight, commercial and special equipment, increased production at AvtoVAZ and the production of auto components.
As Severstal emphasized, during 2023 the industry also managed to solve problems with components in the railway engineering segment, the demand for freight transportation increased - all this made it possible to increase production volumes and, as a result, consumption increased by 15%.
A source Kommersant among metallurgists believes that the level of domestic metal consumption in 2024 will remain at 2023 levels. MMK They believe that further growth in metal consumption during 2024 will be restrained by cooling demand in housing construction after raising the key rate.[10]
2022: Stainless steel imports fall by 20% to 372 kt
The import of stainless steel metallurgical products to Russia in 2022 amounted to just over 372 thousand tons, which is 19.6% less than a year earlier. Such data in February 2023 was cited by the Spetsstal association of consumers and suppliers of special steel and alloys.
According to her estimates, mainly imports came from China (242,300 tons), India (58,800 tons) and Indonesia (21,080 tons). At the same time, according to the industry agency Metals & Mining Intelligence (MMI), imports of stainless steel flat steel to the Russian Federation in 2022 decreased by 15% to about 300,000 tons. The data of Spetsstal included all types of stainless steel, including procurement, flat and long products, welded and seamless pipes, Vedomosti writes.
According to the publication, Russia uses stainless steel of foreign production by 70-80%. It is used in mechanical engineering, the production of household appliances, consumer goods (pots, spoons, forks), plumbing, electrical equipment, equipment for the food industry, pipes and the needs of the military-industrial complex. According to Ilya Kolomeyts, MMI Development Director, the demand for this product in Russia has decreased due to a failure in mechanical engineering, primarily we are talking about cars, a decrease in the production of consumer goods and household appliances. For example, the production of washing machines in Russia fell almost twice, which is associated with a decrease in real disposable incomes of the population and rising prices.
However, in the food industry, pipe production and construction, demand remained steady. Most likely, consumption from the IPC also increased, although there are no relevant statistics.
The Ministry of Industry and Trade recognized the reduction in imports of stainless steel products, but stressed that the production of this product from Russian metallurgists increased by 9,000 tons. The department did not specify the full production volumes.[11]
2019: Steel prices decline
Steel prices are declining on the global market. In October 2019, the average cost of steel dropped by 16% in China, by 18% in Europe and by 21% in the United States compared to the same period last year.
The price of iron ore, a basic steel-making raw material, has risen substantially since the Brumadinho dam disaster in Brazil, which forced mining company Vale, one of the world's largest, to suspend production of rich iron ore in the region. On average, 1.4 tons of iron ore and 0.8 tons of coke coal are needed to produce 1 ton of steel in a blast furnace. The increase in prices for basic raw materials significantly reduces the profitability of blast furnace steel production, while companies using mainly steel scrap in production suffer significantly less from price increases.
The consumer sectors of steel raw materials are also going through hard times. Thus, the European and Chinese auto industries suffer from tightening environmental standards and a decrease in personal demand, which is explained, among other things, by consumer concern about trade conflicts. In the United States, car sales are also declining due to rising prices and trade risks. The construction industry, especially the infrastructure segment, is showing mixed dynamics. The company's experts predict that demand for residential construction in European countries will remain quite low due to a slowdown in economic growth in the EU and high prices for urban housing. On the other hand, the positive momentum for the construction industry in 2020 could be access to relatively cheap and affordable debt financing. Chinese developers are not in such a favorable position, since servicing loans in the PRC is significantly more expensive than in the EU. However, the Chinese authorities, apparently, intend to start implementing a number of new infrastructure projects that could turn into a considerable profit for steel producers. Rising wages and employment in the United States are supporting demand for housing. Investors, however, are worried about a cooling global market and worsening protectionism.
Risks for the industry in 2020: expert analysis
Coface experts predict that at the end of 2019, the growth rate of world GDP will be 2.6%, in 2020 - already 2.5%. Given the high probability of a decline in steel demand in a number of industries, we can expect that steel producers' revenues will continue to decline. The growth rate of American GDP, according to the current forecast of the company's analysts, will fall almost twice (from 2.2% in 2019 to 1.3% in 2020), and at the same time, business activity in the metallurgical sector will probably fall. Warehouse stocks are accumulating quickly, and market conditions over the next few quarters promise to become more favorable, according to Nucor, one of the largest American steel producers. Producers using iron ore to generate steel will have to put up with rising prices for basic raw materials, while enterprises using steel scrap will be in a better position, as the price of steel scrap in the US market fell in 2019 to only $479 per ton.
Tightening environmental regulations can increase the already high costs of manufacturers. It is believed that approximately 5% of greenhouse gases in the United States are generated precisely through the activities of steel industries. If we talk about other countries, we can note Italy, where ArcelorMittal is currently involved in litigation with the Italian government over the Ilva plant. The authorities Italy insist that ArcelorMittal, the world's largest steel producer, should invest in the introduction of the latest "green" technologies at the Ilva plant in order to reduce harmful emissions and minimize the impact of production on the environment.
In China, a government policy called "Blue Sky" provides for a number of requirements that steel producers are required to use only rich iron ore with a minimum proportion of impurities in order to reduce harmful atmospheric emissions. The steel industry is the second largest "polluter" of the atmosphere after the housing and communal industry, which uses coal to generate electricity. Steel producers throughout China are forced to invest in the introduction of technologies to reduce harmful emissions under the threat of stopping their factories.
In the United States, the Donald Trump administration has canceled a number of initiatives to reduce harmful atmospheric emissions, adopted during the presidency of Barack Obama. At the same time, however, the current president intends to increase the productivity and competitiveness of the national steel industry through restrictions related to reducing the amount of energy used by foundries. If this intention comes to fruition and American manufacturers really invest in buying new, more technologically advanced blast furnaces for their plants, the amount of harmful emissions in the United States steel industry could decrease significantly.
The sector appears to have recovered from the Brumadinho dam disaster in Brazil as iron ore prices began to decline, but nowhere near as fast as steel prices, alarming producers. Chinese businesses are buying up rich iron ore to meet emissions standards set by authorities, so producer profits are unlikely to grow substantially anytime soon. Under Coface's baseline scenario, steel price levels will not recover to recent relatively high levels in 2020. Nevertheless, if Vale manages to resume mining rich iron ore in damaged mines, steel producers around the world will surely breathe a little freer. Coface experts, however, believe that the decline in prices for basic raw materials in 2020 in any scenario will be accompanied by a decrease in steel prices.
According to official data from Chinese authorities, the excess production capacity in the country has decreased over the past few years. However, it is expected that by 2030 Indian plants will produce up to 300 million MT of steel (compared to only 101 MT in 2017). The administration of Prime Minister Narendra Modi intends to actively develop Indian infrastructure, which is in a deplorable state today - this means that Indian manufacturers will have the opportunity to become suppliers in large infrastructure projects and, accordingly, make good money. India is the second largest global steel producer after China, but the commissioning of additional capacity may cause an even more significant drop in steel prices due to a shortage of demand - for example, one of the main consumers of steel products is the auto industry, while sales of new cars in India in the first 10 months of this year fell.
2018: China accounts for 52% of global production
In 2018, the world's largest producers of steel raw materials were:
In 2018, the international metallurgical industry suffered greatly from a sharp increase in American import tariffs on steel, and the subsequent trade war between the States and China only aggravated the situation, economists at the international group Coface say. According to the results of the 3rd quarter of 2018, the profitability of steel producers in terms of net profit amounted to 7.36%, and according to the results of the same period in 2019 - only 6%. At the same time, European and Chinese manufacturers suffered much more (-28% and -21%, respectively) than their American colleagues (-1.2%).
According to the OECD, the production potential of the global steel industry greatly exceeds both current production volumes and demand for its products. The excess production capacity at the end of 2018 reached 425.1 metric tons (MT) - about 22% of the total volume of steel produced for the entire year. If product demand stagnates or declines, producer revenues could plummet.
Notes
- ↑ China is cooling slowly
- ↑ The metal was melted into the forecast
- ↑ WTO
- ↑ Metallurgical industry in Russia: the largest steel producers
- ↑ Kazakhstan strengthens its position among major steel producers
- ↑ Severstal confirmed its assessment of the fall in steel demand in the Russian Federation in 2024
- ↑ December 2024 crude steel production and 2024 global crude steel production totals
- ↑ Steel smelting in Russia in 2024 decreased by 7%
- ↑ Terabytes strengthen metal
- ↑ Severstal noted a 7% increase in steel consumption in the Russian Federation in 2023
- ↑ Stainless steel imports to Russia in 2022 fell by 20%
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