Global crude steel production declined 4.2% year on year in March, driven by a sharp contraction in China and a decrease in Middle East, Russia and other Commonwealth of Independent States and Ukraine, while India, the US and other producers like Turkey reported higher output, according to data released April 23 by the World Steel Association.
The 69 countries reporting to the industry body produced 159.9 million metric tons of crude steel in March, down from 166.9 million mt in the same month last year. The decline underscores persistent weakness in China’s construction and manufacturing sectors, while geopolitical tensions appear to have severely disrupted steel production across the Middle East.
The steepest regional decline came from the Middle East, where production fell 33.5% to just 3.5 million mt in March due to the ongoing conflicts.
China, the world’s largest steel producer, accounted for more than half of global output in March, down 6.3% year on year to 87 million mt. The decrease shows how Chinese steelmakers are cutting production as they grapple with weak domestic demand and government pressure to reduce overcapacity.
Among the world’s top 10 steel-producing countries, India stood out with a 9.4% jump to 15.3 million mt in March, as the world’s second-largest steel producer is benefiting from its strong domestic demand.
Production in the US grew 5.2% to reach 7.2 million mt, maintaining its position as the third-largest producer. The increase reflects steady demand from the automotive sector and infrastructure projects. In contrast, Japan, the world’s fourth-largest producer, saw output fall 4.1% to 6.9 million mt, reflecting weak domestic demand and intensifying competition from lower-cost Asian rivals.
Russia’s estimated production dropped 11.4% to 5.4 million mt, matching South Korea’s output level. The sharp Russian decline likely stems from Western sanctions as well as the economic impact of the ongoing conflict in Ukraine. South Korea, by contrast, posted modest growth of 1.5% to 5.4 million mt, supported by export demand.
Turkey achieved a strong growth of 6.4% to reach 3.3 million mt, tied with Germany for seventh place among global producers. Turkey’s performance reflects robust construction activity and its strategic position as a steel supplier to Europe and the Middle East.
Germany’s output increased by 7.5% to 3.3 million mt, suggesting some recovery in European industrial activity despite the broader EU-27 decline. The German rebound may indicate improving competitiveness as energy costs stabilize and manufacturing demand picks up.
Brazil’s production slipped 2.5% to 2.8 million mt, reflecting softer domestic demand. Vietnam, estimated to have produced 2.2 million mt, bucked regional trends with a 5.7% growth, highlighting the country’s expanding industrial base and rising steel consumption.
During the first quarter, the 69 reporting countries produced 459.2 million mt, down 2.3% from the same year-ago period. China’s output during the quarter reached 247.6 million mt, down 4.6%, while India produced 44.7 million mt, up 10.8%.
The year-to-date figures suggest the global steel industry continues to navigate a challenging environment marked by uneven regional demand, geopolitical disruptions and ongoing structural adjustments in China’s steel sector.
Author: Annalisa Villa
