During the 1990s steel as a business was widely considered a lost cause, mired in low profits and poor shareholder returns. Since then, the global sector - which last year generated USD$500 billion (£285 billion, €416 billion) in sales to a range of industries from cars to construction - has rebounded in dramatic fashion.

Another factor has been the wave of steel industry privatisations of the 1990s, most in the former Soviet bloc. Around 10% of world steel output that was subject to state control at the start of that decade is now under the control of conventional companies with shareholders to satisfy. That makes the businesses less inclined to flood the market with cheap material to maintain output quotas - a process that in the past has encouraged price volatility and doubted long-term profitability.

According to World Steel Dynamics, an industry monitor, 2000-15 could turn out to be the third longest period of sustained growth in steel consumption in history. The previous two occurred during the surge in industrialisation in Europe and North America in 1875-1900 and the postwar reconstruction of 1950-70.

Between now and 2015, global steel demand is likely to grow by 3.5% a year, with China's needs expanding at 4-5% a year and those of the rest of the world at 3%.

World crude steel production for the 62 countries reporting to the International Iron and Steel Institute was 105.9 million metric tons (mmt) in October 2006. This is 7.4% higher than for the same month of 2005.

China produced 37.7 mmt of crude steel in October 2006, 18.0% higher than for the same month last year. Indian production reached 3.7 mmt, an increase of 2.6% year-on-year (y-o-y). Production in South Korea declined by 5.9% y-o-y to 4.0 mmt in October 2006. Japan’s production, at 10.1 mmt, was 4.5% higher than a year earlier.

Production in the EU was 17.4 mmt in October 2006. This is 3.5% higher than for the same month last year. Crude steel production in Belgium was 1.0 mmt, an increase of 13.6% compared to the same month last year. This is the first time Belgium has achieved production of 1.0 mmt in a single month. Other major producers in the region include Germany (4.2 mmt, +4.1%), Italy (3.0 mmt, +5.9%), France (1.6 mmt, -7.0%), and the United Kingdom (1.2 mmt, +5.7%).

Crude steel production in North America was estimated at 10.7 mmt in October 2006. This is 1.5% lower than the same month last year. Total production in the United States was estimated at 7.8 mmt in October, 4.7% lower than October 2005.

The steel industry has engineered a revolution in its performance over the last 20 years. There has been massive investment in new products, new plants and technology and in new methods of working. The result has been a dramatic improvement in the performance of steel products, and a related reduction in energy use and consumption of raw materials in their manufacture.

In the recent study "Energy Use in the Steel Industry" by IISI (International Iron and Steel Institute), case histories of four steel product facilities indicated reductions in energy consumption has been in the order of 25% since the mid-1970s. The report suggests the future may bring energy consumption figures of 12 GJ/t of steel, a savings of about 60% from current values, though this is not economically or technically feasible today.

The world average for apparent steel consumption per capita in 1999 was 138.2 kg. It can be noted, in general, the more industrialised countries consumed between 250 - 600 kg of steel per person. Countries with developing economies consume less steel per capita, with examples being Mainland China at 107 kg/capita, Brasil at 99 kg/capita and South Africa with 81 kg/capita. South Korea and Taiwan China topped the list, with South Korea registering 757 kg/capita while Taiwan China was at 1,109 kg/capita.

Developing countries show both low steel consumption per capita and growing steel production, with China representing the biggest actor in world steel production situation. It is very important to consider the fact that Chinese steel plants express very low efficiencies in production and energy consumption and utilization. For these reasons the Chinese Steel and Iron sector shows great potentials for improvements in energy efficiency, which will be object of the next sections of this web site. Here you can find various information about Steel and Iron production, and opportunities for improvement in energy efficiency in the Steel and Iron sector. Information provided is divided in five main sections, which are described as follows:

·              Chinese Context, describing the actual situation in China, and opportunities for improvements in energy efficiency;

·             Benchmarking studies in specific Steel and Iron production factories, individualizing the main areas for intervention;

·              Assessing Key Components necessary for the specific energy audit to be conducted in the Steel and Iron sector;

·              Specific Questionnaire, important for getting the most important information about the industrial sites object of the energy efficiency improvement studies;