Steel: global production down 5.5 percent year-on-year

According to World Steel Association data released July 22, global crude steel production stood at 949.5 million tons in the first half of 2022, down 5.5 percent year-on-year. Total June production hit a four-month low of 158.1 million tons, down 5.9 percent from a year earlier and 6.7 percent from May.

China’s largest steel producer produced 90.7 million tons in June, down 3.3 percent from a year ago and down 6.1 percent on the month, at three-month lows. The country’s volume accounted for 57.4 percent of world crude steel production. China’s steel production in the first half of the year was 526.9 million tons, down 6.5% from a year earlier.

For the second month in a row, the world’s second-largest steel producer, India, was the only producer in the top 10 to record a year-on-year increase in production in June, up 6.3% to 10 million tons, albeit with a 6.2% month-on-month decline. In the first half of the year, Indian production increased 8.8 percent to 63.2 million.

Japan’s June production hit a four-month low at 7.4 million tons, down 8.1 percent on the year and 7.5 percent from May’s seven-month high, while first-half production fell 4.3 percent on the year to 46 million tons.

June U.S. production fell 4.2 percent year-on-year and 4.3 percent from May’s seven-month high of 6.9 million tons, bringing first-half production to 41.1 million tons, down 2.2 percent.

Russia is estimated to have produced 5 million tons in June, down 22.2% from June 2021 and 21.9% from May, reaching the lowest monthly volume since records began This is likely due to the impact of Russia’s invasion of Ukraine on Russian steel demand. Russia’s estimated production for the first half of the year also fell 7.2 percent year-on-year to 35.4 million tons.

South Korea produced 5.6 million tons of crude steel in June, down 6 percent from a year earlier and 3.2 percent from a four-month high in May, while first-half volume fell 3.9 percent from a year earlier to 33.8 million tons.

Across Europe, including the U.K., crude steel production fell 11.9% year-on-year in June to a six-month low of 15.6 million tons, down 8.7% from the six-month high in May. The first-half volume was 97.7 million tons, down 5.9% year-on-year.

Germany, Europe’s largest steel producer, saw its crude steel production drop 7 percent in June to 3.2 million tons, down 1.5 percent on the month, due to high energy costs denting demand and the automotive sector continuing to suffer from a shortage of semiconductor chips.

Germany produced 19.6 million crude steel in the first half of the year, down 5.55 percent from a year earlier.

Turkey also produced 2.9 million tons in June, down 13.1 percent on the year and 8.6 percent from May’s volume. First-half production was down 4.6 percent on the year to 18.9 million tons.

Brazil produced an estimated 2.9 million tons in June, down 6.1% year-on-year and 3.1% from May, while Iran’s estimated monthly production was 2.2 million tons, down 10.8% year-on-year and 4.3% from the previous month. Brazil’s output in the first half of the year was down 2.9% year-on-year to 17.4%, while Iran’s output in the six-month period was down 10.8% to 13.6 million tons.

The production of pig iron from 38 countries in the first half of the year was 651.3 million tons, down 5.5 percent from the previous year, while the world’s direct reduced pig iron production in the first half of the year was 54.5 million tons, also down 5.5 percent from the previous year.