Significant growth in India
Crude steel production in India increased year on year by 17.4% to 11.9 million tonnes in August, and by 10.5% year on year for the period from January to August, Worldsteel said.
The country was also the world’s second-largest steel producer in August, with domestic consumption for the full year of 2023 expected to increase by 7.5% to 128.85 million tonnes, the Indian Steel Association (ISA) said in May.
Moderate increase for Chinese steel output
The top crude steel producer, China, reported a moderate increase in output in August, to 86.4 million tonnes. This was up by 3.2% compared with the corresponding month a year earlier, as well as a more modest 2.6% year-on-year rise for the period January-August.
The production increase in China was despite strict government restrictions intended to limit the sector’s growth, according to Jens Björkman, chairman of the raw material suppliers committee of the International Rebar Producers and Exporters’ Association (Irepas).
But with winter approaching, China was expected to reduce its steel production, Björkman said.
Recent monetary relaxation and stimulus packages, specifically targeting the real estate and steel sectors, might fall short in terms of reviving demand and stabilizing prices, he added.
Sharp decline in Iran
Steel production in Iran decreased by 24.1% in August to 1.6 million tonnes, and the country produced 19.7 million tonnes of crude steel in the first eight months of the year, an increase of 1.1% year on year.
The reason for declining production in the Middle Eastern country was electricity shortages.
Such shortages are a common problem in Iran during the hot summer months, when household consumption for air-conditioning increases. As a result, supply to industries is reduced, and steelmaking is no exception.
In addition, the Iranian government imposed a 2% export duty on all raw materials and steel products, announced on September 4. This would be in addition to a pre-existing 0.5% duty.
Published by: Serife Durmus