Global steel production costs

The global steel industry is critical to the global economy, given steel’s position as an essential component in manufacturing, construction and many other sectors.

Building on our previous report The Spotlight Effect, this new methodology report is produced in collaboration with Global Efficiency Intelligence. The report analyses steel production costs in the major steel-producing countries around the world, between 2019 and 2021.

Findings

• Russia and India have the lowest steel production costs
• Germany, Japan and Italy have the highest steel production costs
• Production costs surged 51% in 2021 due to an extraordinary jump in energy and commodity prices

Understanding global production costs can help policymakers design better policies for this energy-intensive, high-carbon and trade-exposed industry.

Global steel production accounts for around 11% of global GHG emissions. If steel was a country, it would be the third-highest emitter in the world - after China and the US.

This research on steel production costs can lay the foundations for future analysis on steel decarbonisation. We plan to publish and continuously update the plant-level data underlying this report later this quarter.