global economy

  • Steel production in january 2016 declined by 7.1 % in comparison to the same month in the year before. A large portion of this reduction originated in China, where production in january feel 7.8 % to 63.2 million metric tons. Tapping of a blast furnaceAccording to Wirtschaftsvereinigung Stahl steel production in Germany declined 4 % in february 2016 compared to february 2015. Overall Germany produced 3.4 million metric tons of steel in february.

    According to a report published in the German Newspaper Handelsblatt Thyssen-Krupp expects to produce 41.5 million metric tons of steel in 2016.  This means a decline of approximately 3 % compared to 2015. The decline is largely attributed to overcapacity in China, where the shrinking economy cannot absorb the amount of steel produced. Therefore chinese producers turn to the global market, where they sell their material at extremely low prices.