Pakistan is an emerging market, the crude steel production of the country showed an increase of 32% in first half of CY 2017 as compared to same preceding last year.
2.32 MnT Crude steel was produced in Jan-June 2017 against at 1.75 MnT in the same period of 2016.
Country’s crude steel production showed a similar rise in Jan-June 2017 when compared to July-Dec(H2) of 2016. 1.75 MnT of crude steel was produced from July-Dec 2016, which increase to 2.32 MnT in Jan-June 2017.
Pakistan’s total steel consumption in 2016-2017 was 8-9 MnT. The country imported 4-5 MnT of scrap in 2016-2017 which is expected to increase in 2017-2017 to 5-6 MnT as the demand is expected to increase by 25-30%. The region has 120 Steel melting units with a capacity to melt 6 MnT of steel which is expected to increase and be 7 MnT by 2018.
Pakistan production of crude steel and demand increased as Various infrastructure projects are lined up. Out of many is The CPEC (China-Pakistan Economic Corridor) that is to be completed within the next three years and the Silk Road (proposed road project between Gwadar in Pakistan to Kashgar in the Chinese region of Xinjiang) which is boosting the demand to a great extent.
Another reason for increasing demand, an anti-dumping duty of 24.4% on Chinese Origin steel billets was imposed and earlier this year duties were imposed to Chinese imports (preliminary dumping margin of 53% on rebar & anti-dumping duty up to 40% on galvanized steel coils and sheets) . All these changes are made for empowering of the local mills to come up.
Note : We have not included the data of countries which have production of crude steel less than 2 MnT annually.
Change In Production (in %age) Of Crude Steel Production by Top 5 Crude Steel Producing countries :
| Country | H1,2016 | H2,2016 | Total, 2016 | H1,2017 | H1, 2017 Vs H1, 2016 (in % Change) |
H1, 2017 Vs H2, 2016 (in % Change) |
| China | 401.12 | 405.57 | 806.68 | 418.65 | 4.37 | 3.23 |
| Japan | 52.05 | 52.72 | 104.77 | 52.32 | 0.52 | -0.76 |
| India | 47.13 | 48.63 | 95.76 | 49.66 | 5.36 | 2.11 |
| United States | 40.06 | 38.61 | 78.66 | 40.66 | 1.51 | 5.32 |
| Russia | 35.05 | 35.79 | 70.84 | 35.46 | 1.17 | -0.91 |
Source : WSA, Steelmint
Crude Steel Producing Countries with High Margin Change (in %age) :
| Country | H1,2016 | H2,2016 | Total 2016 | H1,2017 | H1, 2017 Vs H1, 2016 (in % Change) |
H1, 2017 Vs H2, 2016 (in % Change) |
| Vietnam | 2.36 | 2.80 | 5.16 | 4.42 | 87.76 | 57.99 |
| Egypt | 2.27 | 2.76 | 5.04 | 3.17 | 39.79 | 14.85 |
| Pakistan | 1.75 | 1.75 | 3.50 | 2.32 | 32.44 | 32.06 |
| Poland | 4.37 | 4.57 | 8.93 | 5.07 | 16.01 | 10.88 |
| Kazakhstan | 2.05 | 2.20 | 4.25 | 2.39 | 16.26 | 8.57 |
Source : WSA, Steelmint
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