Global output drops further in February

Global crude steel production fell 5.7% on-year in February to 142.68 million tonnes due to reduced output in Asia, the EU and CIS. Production also fell 9% versus January, Kallanish notes.

Chinese production is estimated to have dropped 10% on-year in February to 74.96mt, but Indian output was confirmed up 7.6% to 10.06mt. Japanese and South Korean output fell 2.3% and 6% respectively to 7.3mt and 5.16mt. Vietnamese output rose 2.6% to 1.84mt.

EU27 production inched down 2.5% to 11.67mt. Although German output rose 3.8% to 3.22mt, Italian production fell 2% to 2.05mt. French output inched up 0.5% to 1.13mt but Spanish production plunged 13.5% to 941,000t.

Turkish output dropped for a third consecutive month, by 3.3% to 2.95mt.

US production nevertheless continued to increase but growth slowed further to 1.4%, giving 6.4mt, while Brazilian output fell 6.9% to 2.68mt.

CIS output fell an estimated 5.8% to 7.72mt, with Russian output estimated down 1.4% to 5.8mt and Ukrainian production confirmed down 18% to 1.37mt. CIS output figures, especially for Ukraine, will be drastically impacted from March onwards following Russia’s invasion of Ukraine on 24 February.

Global crude steel output in January-February thus fell 5.5% on-year to 299.43mt.

Adam Smith Germany