At Steel Networking Summit 2026, Worldsteel CEO Henrik Adam said global steelmaking capacity is growing faster than demand. Capacity utilization is around 75–76%, he said.
Speaking at the summit in Istanbul, Adam assessed the outlook for steel production, consumption and trade. He noted that capacity continues to increase and the gap between capacity and demand is widening: roughly a quarter of existing capacity is unused.
About 140 million tonnes of new capacity are expected to come online worldwide over the next two years, while demand is not expected to grow at the same pace. Steel production and consumption are changing differently across regions: India is seeing significant growth, while output is declining in several other regions.
Steel export patterns are shifting across regions
According to Adam, global steel exports have remained at around 450 million tonnes a year for more than a decade. At the same time, individual regions’ positions in international trade are changing, although total export volumes have remained relatively stable.
China, which was a net importer of steel about 20 years ago, has become a net exporter. Europe’s position has weakened: it was previously a net exporter. Adam stressed that when analyzing global trade, it is important to consider not only total export volumes but also changes in regional trade balances.
Adam also drew attention to the significant differences in per capita steel consumption between countries. The global average is around 200 kg. Consumption remains high in economies with steel-intensive industries, such as South Korea. India, the world’s most populous country, is still well below the global average, which Adam said points to significant growth potential.
Indirect steel trade is becoming increasingly important
Adam noted that steel trade cannot be assessed solely by looking at direct exports of steel products. Indirect trade also plays an important role—steel incorporated into cars, trucks and household appliances.
Steel produced in one country can be used to manufacture goods that are then exported to other markets. According to Adam, the volume of steel in these products is approaching the volume of direct exports of steel products. Taking both types of trade into account, around 900 million tonnes of steel cross borders each year.
Accounting for indirect trade also affects estimates of actual per capita steel consumption. The difference between the country where steel is produced or processed and the country where the finished product is used leads to a discrepancy between apparent consumption and actual steel use.
Adam added that geopolitical developments are reshaping global trade and investment decisions, with production increasingly geared toward local markets. New measures and rules aimed at restricting international trade are also affecting operating conditions in the steel industry.
Author: SteelRadar editorial team
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