The Grey Chronicles

2008.August.13

World Steel Trade


In 1994, the world was experiencing an aggregation of nations to form Free Trade Areas as well as Regional Trade Associations. By 1995, the World Trade Organization was formally organized to deal with global rules of trade between 123 nations, including the Philippines (WTO, 2005). The WTO rules encompassed almost all commodities, including steel; and even services.

Table 10: World/ASEAN Exports of Semi-Finished & Finished Steel, 1994-2000

World/ASEAN Exports of Semi-Finished & Finished Steel, 1994-2000

Table 10: World/ASEAN Exports of Semi-Finished & Finished Steel, 1994-2000

Shown above is the tabulation of semi-finished and finished steel exports of ASEAN countries plus other countries in Asia compared to the world (refer to Appendix G Table 19, for the table of raw data used to generate Figure 19).


IISI, SEAISI)

Figure 19: Exports as a Percentage of Global Finished Steel Production (Data: IISI, SEAISI)

Figure 19: Exports as a Percentage of Global Finished Steel Production
(Data: IISI, SEAISI)

In Figure 19, except for the slowdown of exports as percentage of world steel production between 1995 and 1997, it has regained momentum started in 1990.

APEC Study Centre (2003) reported, “. . . recovery from the crisis was generally slow in 1998 due to the slower than expected growth in exports but picked up remarkably in 1999, largely due to a number of internal as well as external factors.” This phenomenon is also reflected in the global steel industry.

Referring again to Figure 19, global exports grew from a mere 25.2% of global steel production in 1990 and doubled in 2000. After the Asian Financial Crises, although global production slightly dipped in 1999, however, the percentage of global steel exports continued its rise.

Table 11: World/ASEAN Imports of Semi-Finished & Finished Steel, 1994-2000

World/ASEAN Imports of Semi-Finished & Finished Steel, 1994-2000

Table 11: World/ASEAN Imports of Semi-Finished & Finished Steel, 1994-2000

Shown above is the tabulation of semi-finished and finished steel imports of ASEAN countries plus other countries in Asia compared to the world (refer to Appendix G Table 18, for the table of raw data used to generate Figure 20-22).

Moitti and Sachwald (2006) emphasized that among 36 classifications under the industrial sector worldwide, the growth of iron and steel industry increased most steeply between 1990s and 2000s.

Dachin (2006) noticed that structural changes of international trade flows indicate modifications in competitiveness of developing countries, including the Philippines, in terms of production, technological upgrading and exports under the pressure of globalization.


Notes:

World Trade Organization (WTO, 2005). Understanding the WTO, New York: WTO, October, 2005. pp. 1-10. back to text

APEC Study Centre (2003). “Asian Financial Crisis: Causes and Development,” China: Hong Kong Institute of Economics and Business Strategy, 2003. p. 48. back to text

Moitti, Luis and Frédérique Sachwald (2006), “The ‘Old Economy’ in the New Globalization Phase.” Paris, France: Institut Françsais des Relations Internationales, 2006, p. 16. back to text

Dachin, Anca (2006), Structural changes of international trade flows under the impact of globalization, Economie teoreticã si aplicatã, ECTAP, 18 August 2006. pp. 47-52. back to text

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