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Global crude steel production fell 5.8% year-on-year in March to 161 million tonnes, bringing total production for the first quarter of 2022 to 456.6 million tonnes, down 6.8% from the same period in 2021.However, global production in March was 13% higher than February’s volume.

The largest producer, China, produced 88.3 million tonnes of crude steel in March, down 6.4% year-on-year, but up 17.7% on the month and accounting for 54.8% of global crude steel production. Total steel produced in China in the first quarter was 243.4 million tonnes, down 10.5% year-on-year.

The world’s second largest steel producer, India, increased production in March by 4.4% year-on-year and 7.9% month-on-month to 10.9 million tonnes, with first-quarter output up 5.9% year-on-year to 31.9 million tonnes.

The only other producer in the top 10 to increase production in March was Brazil, with an estimated 3 million tonnes, up 5.4% year-on-year and 11.1% from the previous month. However, overall first quarter production fell 2.2% year-on-year to 8.5 million tonnes.

March production from Japan fell 4.3% year-on-year, but was up 9.6% year-on-year in April to 8 million tonnes, and first quarter production also fell 2.9% year-on-year to 23 million tonnes.

Production from the US fell 1.7% year-on-year, but rose 9.4% month-on-month to 7 million tonnes in March, bringing the first-quarter total to 20.3 million tonnes, down 0.4% from the same period in 2021.

Russia is estimated to have produced 6.6 million tonnes in March, down 1.8% year-on-year but up 13.8% month-on-month, with quarterly production down 1.2% to 18.7 million tonnes.

South Korea’s production fell 6.1% year-on-year in March to 5.7 million tonnes, although this was 9.6% higher than the previous month.

Crude steel production across Europe, including the UK, fell 7% year-on-year to 17 million tonnes in March, although it was up 8.9% month-on-month. The region’s first quarter production amounted to 48.7 million, down 3.9% from the same quarter in 2021.

Germany, Europe’s largest steel producer, produced 3.3 million tonnes in March, down 2.9% year-on-year but up 3.1% month-on-month. The European steel market has been hit in recent months by a lack of demand from the automotive sector due to shortages of semiconductors and chips that limit vehicle production.

With competitive imports and buyer resistance to current price levels, prices could fall to stimulate demand and fill capacity.

High energy prices have also had an impact on production in Europe, with production levels declining and a reduction in electric arc furnace shifts, due to energy prices and also to recent waves of COVID-19.

Production is expected to continue to decline in Europe in the coming months, especially due to a gas supply problem, which is worrying suppliers about whether they can maintain production.

Semiconductors are still an issue, but the automotive sector’s order book is still relatively full and production capacity cannot drop too far from existing orders.

Meanwhile, Turkey produced 3.3 million tonnes, down 2.9% on the year, but 10% higher than February’s volume. Production of pig iron in March was 108.5 million tonnes, down from 115.9 million tonnes in March 2021, but up from 97.1 million tonnes in the previous month.

Data source: Worldsteel Association