Crude Steel Production is on the Rise…A Sign of an Improving Global Economy

It’s no secret that the worldwide economy has been soft for the last two or three years or, to put it even more bluntly – downright weak.

National economies on all continents have been affected. Standards of living have dropped and people everywhere have suffered.

Clearly, most industries have felt the impact of the economic downturn … including the global steel manufacturing industry. In country after country where steel manufacturers operate, jobs have been lost … lots of them.

But, there are signs that things are changing – very positive signs. In fact:

A recently-issued report indicates that crude steel production – in the 59 countries where steel is produced – reached 119 million tons in February, 2012. That was a significant increase of 1.9% over the same period in the previous year, February, 2011. 

The report was issued by the World Steel Association (world steel) and its importance cannot be overstated. Here is the reason why …

If global steel production is an economic indicator (and it is) then the increase in crude steel production can be looked upon as proof that the worldwide economic malaise is beginning to turn around. Yes … it’s a clear sign that national economies everywhere, including in Australia and New Zealand, are about to enjoy a reversal and “perk up.”

And that is important – for individual workers and for the country’s economy. A closer look at the numbers shows that this increase in crude steel production is truly global. It’s happening everywhere.

Here are just some of the encouraging statistics …

• China Increased production of Crude Steel by 3.3% … to a staggering total of 55.9 million tons
• Korea increased steel production by 7.6% … to a total of 5.4 million tons
• Australia and New Zealand enjoyed production increases, too … signs of an improving economy

In European Union Countries –

• France increased production by 9.3% … to 1.3 million tons

And In North America –

• The United States increased production by 8.5% -- to 7.3 million tons.

There were, of course, countries where production actually fell. Among those are Japan, Germany and Spain. But, they were dramatically outnumbered by countries where production rose … and that includes South American stalwarts like Brazil.

So … what does all of this mean? It seems pretty obvious. Steel is used in construction, an industry that, when healthy, generates jobs and the local economy.

Increases in crude steel production are proof that “better days” may be just around the corner – for the economies of European countries … for America … and, of course, for Australia and New Zealand.

Hopefully, crude steel production will increase in March … in April … and in all the months after. If that happens, prosperity will follow – in Asia and globally, as well.

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