Germany posts strongest output growth rate among top-10 steel-producing countries
Global crude steel production increased by just 0.8% to 146.8 million tonnes in November compared with the same month in 2023, but output fell by 1.4% year on year from January to November, worldsteel said on Monday December 23.
Germany
Crude steel production in Germany was up by 8.6% year on year to 2.9 million tonnes in November, according to worldsteel, with the output of Europe’s largest steel producer also up by 5.3% in the year to November compared to the same period in 2023 (see chart below).
Sources said the was probably mostly due to the decline in October and November 2023, when production cuts were introduced to balance supply and demand in the European steel market.
The increase could also be partially driven by the increase in the production of semi-finished steel products for export as a substitute for sanctioned Russian material.
The European Union’s 27 member states also reported a combined increase in crude steel production in November compared with the same month in 2023, with output up by 3.9% to 10.7 million tonnes. The year-on-year rise from January to November was 2.2%, with output reaching 119.9 million tonnes.
But despite the increased output, sources said that demand for finished flat and long steel products remained sluggish across Europe, with oversupply frequently cited as one of the main reasons hindering a stronger price rebound.
India
India was the second top-10 steel-producing country to record a significant increase in crude steel production in November, with output up by 4.5% to 12.4 million tonnes compared with the same month in 2023.
Output for the year to November was also up, increasing by 5.9% compared to the same period in 2023.
And larger steel mills in India recently tried to increase domestic finished steel prices.
A slight price rebound was achieved on expectations that the Indian government might impose provisional duties on steel imports before the completion of a safeguard investigation announced on December 19.
Earlier in December, India’s Ministry of Steel proposed a 25% safeguard duty on imports of all major flat steel from other Asian countries, such as Japan, South Korea, and Vietnam.
But the higher prices for HRC struggled to gain tractions, with demand for steel failing to match the increase in supplies following the capacity additions by all major steel mills in India since March, Fastmarkets understands.
China
In China, crude steel production moved up 2.5% year on year in November to reach 78.4 million tonnes, but output was down by 2.7% from January to November compared with the same period in 2023 and slow domestic consumption in the world’s largest steel-producing country remained a major concern.
To compensate for the sluggish domestic consumption, China has focused on exports in recent months, sources told Fastmarkets, and despite exports falling month on month in November, compared with the same month in 2023, volumes shipped out of the country increased, according to preliminary data ffrom the General Administration of Customs.
Steel exports amounted to 9.28 million tonnes in November, which was down by 17% from 11.18 million tonnes in October, but up by 16% from 8.01 million tonnes in November 2023.
But competitive Chinese steel prices in overseas markets resulted in an increase in trade protectionism around the world.
Russia
Estimated crude steel production in Russia fell by 9.2% year on year in November, to 5.5 million tonnes, worldsteel said, with output also down by 7% in the year to November, compared to the same period of 2023.
Key steel consuming industries in Russia were unable to generate sufficient demand to maintain high production rates in the country.
Russian iron and steel export volumes fell to 15.5 million tonnes in January-October 2024, according to data from Global Trade Tracker – 23,9% lower than the same period in 2023, due to international sanctions imposed following Russia’s attempted invasion of Ukraine.
In addition to countries and companies rejecting Russian steel exports, the prices achievable in the few countries still willing to do business with Russia have continued to fall.
WV Stahl: German August crude steel production up 0.5% on year
German crude steel production edged up 0.5% year on year to 2.9 million metric tons in August, according to data published Sept. 24 by German steel federation WV Stahl.
However, the volume was down 8.6% month on month, according to the data.
This brought January-August crude steel production from German mills to 25.4 MMt, up 4% year on year.
Of the total August volume, 2.1 million was produced from blast furnaces, down 0.1% year on year, and down 9.1% from July.
This brought the total for the eight-month period to 18 MMt, increasing 2.2% year on year.
According to WV Stahl, German crude steel production from electric arc furnaces in August totaled 734,000 metric tons, up 2.3% year on year but down 7% month on month.
Output from EAFs over January-August also increased 8.6% year on year to 7.4 MMt.
Meanwhile, Germany produced 2 MMt of pig iron in August, up 0.3% year on year, but down 7.4% form the previous month, bringing the eight-month volume to 16.55 MMt, up 2.4% year on year.
Output of hot-rolled steel products in August dropped 3.1% year on year and 9.6% from July to 2.35 MMt, with the January-August volume up 2.6% at 21.7 MMt.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Northern Europe at Eur555/mt ex-works Ruhr Sept. 23, down 20% since the start of 2024.
worldsteel: global steel production falls 6.5% on year in Aug
Global crude steel production totaled 144.8 million metric tons in August, dropping 6.5% year on year and down 4.9% from July, according to World Steel Association data published Sept. 24.
This brought total production for the first eight months of 2024 to 1.25 billion metric tons, down 1.5% on the year.
China produced 77.9 MMt in August, down 10.4% on the year and 6% from July, making up 53.8% of total global crude steel output.
This brought China’s January-August volume to 691.4 MMt, down 3.3% year on year.
The world’s second-largest steel producer India saw production grow 2.6% year on year in August to 12.3 MMt, which was also up 1% month on month, the data showed.
India’s cumulative January-August output rose 6.5% to 98.5 MMt, according to worldsteel.
Japan’s August production was 6.9 MMt, down 3.9% on the year and 3.2% lower than July, with January-August output down 2.9% on the year at 56.7 MMt.
US output in August was 7 MMt, edging up 0.7% year on year and up 3.4% on the month, taking January-August production to 53.8 MMt, down 1.7% year on year.
Russia was estimated to have produced 5.8 MMt in August, falling 11.5% on the year and down 0.7% month on month, bringing its estimated January-August output to 48.5 MMt, down 4.9% on the year.
South Korea produced 5.5 MMt of crude steel in August, down 2.2% year on year and down 0.9% from July, with the eight-month volume down 5.5% on the year at 42.5 MMt.
Europe Jan-Aug output up 2.2%
For the European Union, crude steel production rose 2.2% on the year to 9.1 MMt in August, although this was 17% lower on the month, the data showed.
Europe’s January-August volume was 87.2 MMt, climbing 1.5% on the year.
Germany, the largest steel producer in Europe, saw its crude steel production edge 0.5% higher on the year to 2.9 MMt, although this was down 8.6% on the month.
In January-August, Germany produced 25.4 MMt of crude steel, up 4% year on year, the data showed.
Platts, part of S&P Global Commodity Insights, assessed domestic HRC prices in Northern Europe at Eur555/mt ex-works Ruhr Sept. 23, down 20% since the start of 2024.
Of the top 10 producers, Turkey saw the largest gains in August, with output rising 13.8% year on year to 3.1 MMt, according to the data, also representing a 3% increase from July. Eight-month production was up 14.8% on the year at 24.8 MMt.
Brazil produced 3 MMt in August, rising 7.3% year on year, but down 3% from July, while Iran’s monthly output was 1.4 MMt, falling 9.9% on the year and 22.7% lower than the previous month.
Brazil’s estimated production over January-August climbed 3.8% on the year to 22.4 MMt, while Iran’s output for the eight-month period rose 1.9% to 19.8 MMt.
October production of pig iron from 37 countries was 102.3 MMt, falling 6.1% year on year, the data showed, while direct reduced iron produced worldwide from 13 countries amounted to 10.5 MMt, up 3.35% year on year, the data showed.
Pig iron output over the January-August period totaled 854.6 MMt, down 3% year on year, while DRI production for the period rose 5.85% on the year to 82.7 MMt.
Crude steel data covers the 71 countries that report to worldsteel, accounting for about 98% of the world’s crude steel production.