World Feb crude steel production down 1.0% on year on weak economy: worldsteel

World crude steel production for the 63 countries reporting to the World Steel Association was 142.4 million mt in February, a 1.0% decrease from February 2022, worldsteel said March 23.

The month’s crude steel output was hit by the still-weak economic growth, with mills that kept production low due to high energy costs, particularly in the EU, and due to the impact of the continuation of the war in Ukraine and its related disruptions and the massive earthquake in Turkey.

Among the top 10 steel-producing countries, Turkey in February registered the largest drop in steel production, down by 28.9% year on year to 2.1 million mt following the earthquakes that hit the county at the beginning of the month and that led domestic steel companies in southeastern Turkey to temporary suspend productions.

The world’s largest steel producer, China is estimated to have produced in February an increase of 5.6% year on year to 80.1 million mt

The world’s second-largest steel producer, India instead saw a decrease in its output by 1% to 10 million mt, while production from Japan, the third-largest steel producer, saw a drop of 5.3% to 6.9 million mt.

Output from the US also fell 5.3% to 6 million mt in February, while South Korea production went down by 1.1% to 5.2 million mt.

Europe and CIS

By region, Russia, Ukraine and the other CIS countries registered the largest decrease in production last month, down by 21.3% to 6.4 million mt.

After them, the EU (27 countries) recorded the largest decrease in output, down by 12.6% year on year to 10.5 million mt.

Europe’s biggest crude steel producer, Germany, showed an on-year drop in its output in February, down by 6.9% year on year to 3 million mt. The largest European steel producer registered a wider crude steel decline in its electric arc furnace output in February, down 10.8% year on year at 950,000 mt, and output from basic oxygen furnaces down 4.9% at 2.04 million mt of crude steel, according to German steel federation WV Stahl data.

In Europe, normal production rates were not registered in February by steelmakers due to the production stoppages registered during 2022 as steel mills in Europe reduced production in the second half of 2022 to balance lower demand and supply.

Platts assessed TSI North European HRC moved from Eur755/mt to Eur805/mt EXW Ruhr in February.

January-February down 0.8%

Global crude steel output for the 63 countries monitored also fell in the January-February period, by 0.8% year on year, to 297.8 million mt. The 63 countries accounted for an estimated 85% of global steel production in 2022.

All of the top 10 steel producing nations recorded a fall in crude steel production in the first two months of the year, compared with the same period a year earlier, except for China, India and Iran.

China’s crude steel output in January-February, at 168.7 million mt, was 5.6% higher than in the same 2022 period, while India went up by 1% from a year earlier to 21.3 million mt.

In the given period, Platts assessed SS400 HRC of 3 mm thickness at $592/mt FOB China on Jan. 3 to $658/mt FOB China on Feb. 28.

Platts assessed SS400 HRC of 3 mm thickness unchanged at $668/mt FOB China on March 23. The same grade of coil was assessed down $3/mt on the day at $639/mt on a CFR Southeast Asia basis.

— Annalisa Villa