While global steel production levels remain well ahead of levels seen at the same time last year — when the COVID-19 was still only in its early days and demand had not yet had a chance to bounce back — output levels in June did fall compared with the previous month.
According to the World Steel Association’s latest monthly report, global crude steel production totaled 167.9 million net tons in June.
Cut-to-length adders. Width and gauge adders. Coatings. Feel confident in knowing what you should be paying for metal with MetalMiner should-cost models.
Steel production falls month over month
Global steel production dropped 4.0% from May’s 174.8 million net tons.
However, global output rose by 11.6% on a year-over-year basis. June 2020 production totaled 150.4 million net tons.
Chinese steel production drops
Top steel producer China also saw its steel production fall in June compared with the previous month.
China, which has moved to curb steel production in efforts to meet emissions targets, produced 93.9 million tons in June. The total marked a 5.6% decline from 99.5 million tons in May.
MetalMiner’s Stuart Burns weighed in on the recent steel price rally in China and the impact of production cut mandates from Beijing.
“Since prices came off they have been making a steady recovery,” he wrote. “Beijing’s pressure to curb excess production capacity as part of wider environmental targets raises the prospect of material shortages in the face of still robust demand.”
The Chinese cold rolled coil price surged above $1,100 per metric ton in May before plunging after Beijing’s attempt to curb prices by issuing a warning to speculators. The price proceeded to drop to around $930 per ton but has since recovered. The Chinese CRC price closed Monday at $996 per metric ton.
Chinese hot rolled coil has followed a similar trajectory, closing Monday at $915 per metric ton.
Around the world
No. 2 steel producer India churned out 9.4 million tons in June, up 21.4% year over year.
Meanwhile, Japan’s output rose 44.4% year over year to 8.1 million tons.
In addition, U.S. production rose 44.4% to 7.1 million tons. Estimated Russian production reached 6.4 million tons, or up 11.4% year over year.
More MetalMiner is available on LinkedIn.