Balli Steel has reported that in the last 12 months, global steel prices have increased by 100 percent and now range from around $1,000 to $1,500 per ton. The company highlights that global annualized steel production has reached a record 1.4 billion tons, up from 800 million tons in 2000. Balli Steel indicated that global steel trading demand is for two types of steel products: construction steel - beams, bars and mesh, used for infrastructure projects, offices, housing and leisure facilities - and industrial steel - used for manufacturing items such as automobiles, ships and pipes. The company revealed that the construction activity in emerging markets including China, the Middle East and Brazil, has been driving the price of steel over the past few years. Balli Steel calculates that there will be continued buoyancy and capacity constraints for steel in the oil, shipbuilding and gas industries. They also highlighted the tremendous growth opportunities in emerging markets which now account for over 75 percent of global steel consumption. China now dominates the world's steel market, accounting for 45 percent of global steel consumption, up from just 30 percent 10 years ago. China has also emerged as a leading steel producer, with steel production expected to reach 550 million tons in 2008, up from approximately 200 million in 2000. Balli Steel stressed that the Middle East is a strong market for the steel industry, with the market growing at a rate of 3.2 percent per annum. __
