Slow growth in steel demand leads to lower capacity utilization

One of the main reasons for the slow growth of the global steel industry during the recovery period is related to the excess volume of steel compared to the demand in the steel market.

A multitude of factors are undermining the efforts to add new capacity by steel mills around the world. They relate to the domestic trend in end-user demand, export difficulties heightened by safeguards adopted by major steel-producing countries, government fiscal and monetary policies that make investment more expensive than market dynamics and various environmental regulations that have made new steel operations are complex. They can be dictated by the antitrust statutes of the association.