Global steel production gains 6.2% to 117.2 million mt

World crude steel production increased 6.2% year on year to 117.2 million mt in July 2008 - but dropped 1.7% from the June figure of 119.2 million mt - according to data released by the International Iron and Steel Institute August 20.

With July having one more day than June, "on an average daily basis, July production fell 4.8%, in line with the average seasonal sequential drop of 4.7% seen over the last three years," noted steel analyst Michelle Applebaum.

The Brussels-based IISI collects steel production data from 66 reporting countries.

August 20's report indicated a 6.1% year on year increase to 815.1 million mt from 768.3 million mt for the first seven months of the year.

The world's moving annual total growth rate for steel production remained at 5.8%, unchanged for the last four months, said the IISI.

China remained the world's largest steel producer in July.

It notched a total of 44.8 million mt of production, up 7.5% on the same month last year, but down against the June 2008 figure of 46.9 million mt.

In the seven months to the end of July, China recorded a 9.3% year-on-year increase to 308.2 million mt from 281.9 million mt.

Overall, Asia produced 66.4 million mt of crude steel in July 2008 compared with 62 million mt in July 2007, a 7.1% increase in crude steel production.

The region's output declined, however, from 68.2 million mt in June.

German production continued to dominate the European Union countries' steel sector, accounting for 3.8 million mt, down 5.7% from July 2007 and down against July 2008's 4.2 million mt.

Overall, the EU27 countries produced 17.7 million mt of crude steel in July, a slight increase of 4.1% from July 2007.

It also fell from June's total of 18.2 million mt.

Elsewhere in the European region, Turkey produced 2.52 million mt, up 11.3% on the same period in 2007 and slightly up from June's 2.51 million total.

US production in July was 8.5 million mt, up 2.7% year on year and up from 8.4 million mt in June 2008.

Total crude steel output in North America was 11.6 million mt in July, an increase of 7.1% from July 2007.

South America posted a 12.8% year-on-year increase, producing 4.5 million mt in July.

Brazil produced 3.2 million mt in July, an 11.5% year on year increase, and up from 2.9 million mt in June.

Countries in the Commonwealth of Independent States, including Russia, Ukraine and others, combined for July output of 10.56 million mt, a 2.1% uptick over the same month a year ago.

Japan saw a slight 1.7% increase to 10.2 million mt in July from 10 million mt in the same month in 2007.

Meanwhile, Korea racked up a 13.1% increase to 4.8 million mt in July from 4.3 million in July 2007, also showing a minor upturn from June's 4.7 million mt. India's July 2008 production was estimated at 4.48 million mt, a 6.2 increase over July 2007.

"We expect to see further declines in August [global] production due mostly to a large seasonal downturn (average of nearly 10% over the past three years) in European output where many manufacturers shut down for holidays for the entire month," said Applebaum.

Created: August 21, 2008

Return to top

Steel Markets Daily offers steel prices that are backed with thorough market intelligence for the international steel industry and its consuming markets. Platts Steel Markets Daily also provides market commentary and news from the world's major trading hubs and industry specialists across the globe and analysis of market fundamentals that affect the whole steel supply chain.