This in-depth article will shed light on the top steel companies in the world and the countries they are headquartered in. We'll also discuss which sector consumes the most steel and what are the projections for the metal's usage in the future. If you want to skip the details, readTop 8 Steel Companies In World.
11 out of the top 20 steel companies in the world are from China, showing the country's monopoly in the global steel sector. Other major steel companies are from Luxembourg, Japan, South Korea, India, and the United States.
The biggest Chinese steel producing companies are China Baowu Group, Ansteel Group, and Shagang Group, among others. Aside from the top companies in China, ArcelorMittal S.A. (NYSE:MT) is the largest steel producing company in Europe (and the 2nd largest worldwide). In 2022 alone, ArcelorMittal S.A. (NYSE:MT) had a steel tonnage production of over 68 million metric tons, slightly down from the company's yield of 79.26 million metric tons in 2021. Owing to its production mills spread in Europe, Brazil, and Mexico, the company's revenue of crude steel reached $79.8 billion in 2022.
The biggest steel producing company in the US is Nucor Corporation (NYSE:NUE), based in Charlotte. Nucor Corporation (NYSE:NUE) is also the biggest scrap recycler in North America and the main mini-mill steelmaker in the country. In 2022, steel tonnage of Nucor Corporation (NYSE:NUE) exceeded 20 million metric tons, and the company has announced a new $100 million electric arc furnace melt shop at its Arizona bar mill that will have to produce over 0.6 million metric tons annually.
In Asia, South Korea's POSCO Holdings Inc (NYSE:PKX) is at the top, along with Japan's Nippon Steel Corporation. POSCO Holdings Inc (NYSE:PKX) has a market cap of $23.363 billion as of current and produces a generous amount of the metal each year. In 2021, POSCO Holdings Inc (NYSE:PKX) was ranked 6th in the world based on its production volume but has now been de-ranked by one position owing to its reduced production in 2022.
If you want to invest in this ever-growing metal to solidify your investment portfolio, read 11 Best Steel Stocks To Buy.
Which Is The Biggest Steel Company In The World?
As of the present date, Baowu Steel Group, headquartered in Shanghai, China, is the world's largest steel producer. The company was formed in 2016 through the merger of Baosteel Group and Wuhan Iron and Steel Corporation and has incredible production capacities. As per World Steel Association data from 2022, Baowu's annual crude steel output reached an impressive 131.84 million metric tons, representing a significant proportion of the global steel production, which stood at approximately 1.87 billion metric tons.
Post-Pandemic Changes in the Global Steel Sector
The World Steel Association reported a global downturn in finished steel consumption by 2.3% in 2022. The decrease came in the wake of the escalating conflict in Ukraine, COVID-19 containment measures in China, global inflation, and a worldwide surge in energy prices that took a toll on the metal mining sector.
Conversely, the United States exhibited a contrasting trend as the country's estimated consumption of finished steel products increased by 2% over the same year. According to USGS, the resurgence resulted from the economic recovery that stemmed from the disruptions of the COVID-19 pandemic.
Another important factor that influenced global steel production was the economic climate in China. In 2022, Chinese finished steel production fell by 4%, a trend projected to persist into 2023. The static state can be traced back to the continuation of COVID-19 mitigation policies that induced a slump in demand for real estate and construction investments. Further east, Japan and South Korea also witnessed a decline in steel demand in 2022, primarily associated with reduced activity within the construction industry.
However, in the same period, India saw a notable uptick in the production of finished steel products, with an expected rise of around 6%, according to USGS. Substantial infrastructure expenditures, rising consumer goods demand, and a resurgence in the automotive sector are the drivers behind this growth.
Which Sector Is The Biggest Consumer Of Steel?
According to the World Steel Organization, the prevailing demand for steel in the housing and construction sector accounts for over 50% of the world's steel consumption. Comprising residential and non-residential structures such as bridges, highways, and tunnels, this sector is pivotal in the constant expansion of global urban landscapes. Data also indicates that per capita steel use has escalated from 150 kilograms in 2001 to approximately 230 kilograms in 2020.
Also, reports predict a continuous uptick in steel consumption and say there is expected to be a 20% surge in global steel usage by 2050. The forecasted growth will stem from population growth, urbanization trends, and economic development, especially in emerging economies with extensive infrastructure development.
Which Is The Largest Producer of Steel in the World?
China is the largest producer of steel in the world and accounted for approximately half of the world's output in 2022. Data from the World Steel Association reveals that in 2022, China manufactured about 1.013 billion metric tons of crude steel.
The government's policies promoting self-sufficiency in metal mining have encouraged the growth of domestic steel industries, such as Baowu Steel Group and HBIS Group, among others, that reinforce China's leading position in global steel production.
We ranked the top 20 largest steel producing companies in the world according to their steel production tonnage in 2022. The sources we consulted included World Steel Organization, S&P Global and USGS, among others.
Based on extensive data, these were the top steel-producing companies in 2022:
20. IMIDRO
Headquarters: Iran
Steel Tonnage in 2022: 18 million metric tons
In 2022, Iran's major mining conglomerate, Iranian Mines & Mining Industries Development & Renovation Organization (IMIDRO), produced 18 million metric tons of steel. The throughput represents an increase compared to the previous year, where the output totaled 16.7 million metric tons and shows a noteworthy year-on-year growth in the company's steel yield.
19. Liuzhou Steel (SS:601003)
Headquarters: China
Steel Tonnage in 2022: 18.21 million metric tons
Lizhou Steel company's annual output for 2022 stood at 18.21 million metric tons, compared to 2021's yield of 18.83 million metric tons. In the span of a year, the company registered a slight decline in steel production.
18. Hyundai Steel (KS:004020)
Headquarters: South Korea
Steel Tonnage in 2022: 18.77 million metric tons
Hyundai Steel is a pillar in South Korea's mining sector. The company yielded 18.77 million metric tons of steel in 2022. This figure, while substantial, denotes a minor decline when compared to the yield of the preceding year. In 2021, Hyundai Steel's output was reported to be slightly higher at 19.64 million metric tons.
17. Fangda Steel (SS:600507)
Headquarters: China
Steel Tonnage in 2022: 19.70 million metric tons
In FY 2022, China's Fangda Steel Company reported a steel output of 19.70 million metric tons. This production showed a slight dip when contrasted with the company's production performance in 2021. For context, the company's yield in the previous year stood at a slightly higher mark of 19.98 million metric tons, according to the World Steel Organization.
16. Nucor Corporation (NYSE:NUE)
Headquarters: United States
Steel Tonnage in 2022: 20.60 million metric tons
Nucor Corporation is the biggest steel producing company in the US, reflected by its recorded output of 20.60 million metric tons. Comparative data reveals that the company's production volume in 2021 reached a higher peak of 23.13 million metric tons. Moreover, the company's market cap at the time of writing the article is $40.686 billion.
15. JSW Steel Limited (NSE:JSWSTEEL)
Headquarters: India
Steel Tonnage in 2022: 23.38 million metric tons
India's JSW Steel Limited experienced a significant increase in steel production, registering a volume of 23.83 million metric tons in 2022. This upsurge reflects a notable improvement when contrasted with the previous year's 18.59 million metric tons yield. JSW Steel Limited was ranked 19th according to production volume in 2021, but owing to its increased production in the following year, the company is now 15th amongst the top steel companies in the world.
14. JFE Steel Corporation (TYO:5411)
Headquarters: Japan
Steel Tonnage in 2022: 26.20 million metric tons
JSW Steel Limited reported a total steel output of 26.20 million metric tons for the 2022 fiscal year. However, this tonnage reflects a slight downturn from the preceding year, when the company's production reached 26.85 million metric tons.
13. Hunan Steel Group (Former Valin Group)
Headquarters: China
Steel Tonnage in 2022: 26.43 million metric tons
In 2022, Huna Steel Group saw 26.43 million metric tons of steel throughput. Data shows that the company's yield stood at 26.21 million metric tons in 2021, marking a year-on-year production volume growth. Hunan Steel Group upped a rank from 14 to 13 in 2022 based on its production volume. Also, the company's market cap is $33.852 billion as of current.
12. Delong Steel (SZ:000593)
Headquarters: China
Steel Tonnage in 2022: 27.90 million metric tons
Delong Steel is another Chinese company among the top steel companies in the world. The crude steel company saw a throughput of 27.90 million metric tons of steel in 2022. The firm's production volume was relatively slightly lower in 2021, totaling 27.82 million metric tons.
11. Shandong Steel Group (SS:600022)
Headquarters: China
Steel Tonnage in 2022: 29.42 million metric tons
Shandong Steel Group's annual steel production output was 29.42 million metric tons in 2022. The company saw a comparatively lower yield of 28.25 million metric tons in 2021. Such stable steel yield underlines the company's substantial annual production upsurge.
10. Tata Steel (NSE:TATASTEEL)
Headquarters: India
Steel Tonnage in 2022: 30.18 million metric tons
Tata Steel Group is an Indian multinational corporation that reported a steel production of 30.18 million metric tons in 2022. Notably, this figure indicates a slight downturn from their previous year's performance. In 2021, the conglomerate's yield was 30.59 million metric tons. Tata Steel company's market cap is $1.421 trillion as of current, and it's the largest steel producer in India.
9. Shougang Group (SZ:000959)
Headquarters: China
Steel Tonnage in 2022: 33.82 million metric tons
Shougang Group, a prominent player in the Chinese steel industry, is one of the top steel corporations in the world and Asia. It reported a steel production of 33.82 million metric tons in 2022. However, the Chinese company's steel tonnage decreased from 35.43 million metric tons in 2021 to reach the current record yield.
