MOSCOW Global crude steel
overcapacity is expected to drop to 20 percent by 2018 from 26
percent currently, according to Andrey Laptev, head of strategy
development at Russian steelmaker OAO Severstal.
"Overcapacity is expected to
persist (for) the next two to three years due to slow demand
growth and new capacity additions," Laptev told delegates at
the Moscow Steel Summit June 4. "However, (the) supply-demand
balance is expected to improve (in the) longer term."
Overcapacity is expected to
remain at 26 percent until 2015, when it will gradually drop
over the next three years, he said, citing the forecasts of
both Moscow-based Severstal and the Organization for Economic
Cooperation and Development.
The current excess capacity in
crude steel output is estimated at 500 million tonnes per year
out of global total of 1.8 billion tonnes annually.
A version of this article
was first published by AMM sister publication Steel