Last year world crude steel production slowed overall yet it turned to the upstate slowly but steadily entering the new year especially centering India and Turkey whose growth contributes to the global steel output. According to the World Steel Association having 71 country members around the world, the first two months reached 306.9 million tons with a 3.0 percent year on year add. In February alone, the figure was up 3.7 percent totaling 148.8 million tons.
While most of the European countries keep their contraction still the rest of the world sees a gain on the contrary amid a remarkable growth in the Middle East and Africa in terms of the growth pace. The crude steel production continues slowdown in economy overall when it comes to the major steel producing countries, but they are feeling a little bit vibe, the Association said. However, there exist a kind of disfavors of the industry including the delay of interest rate cut, continuing inflation and financial woes in the newly emerging countries. Of the world Top 10 steel producing countries, 8 countries saw their crude steel production gain yet for US and Russia.
China, world largest steel producing country, is not still out of the woods as the real estate slump prolongs. The steel demand constraints thus are forecast to continue so long as any definite measures to accelerate steel business even through the Two Sessions in China. China’s crude steel production was upgraded 1.6 percent for the first two months posting 168 million tons. India also keeps increasing its raw steel output to a large extent, with a high growing pace in tandem with the manufacturing advance. The country showed a 11.8 percent year on year add to 140.2 million tons last year, while the figure is forecast to keep robust this year as well. For the first two months this year, India increased its crude steel production by 10.0 percent to 24.5 million tons as the government investment is extending in energy and infrastructure backed by the growing automotive and endurable goods spending.
In Japan, there lacks any particular momentum to escalate its crude steel production although automotive production is on the rise but because other sectors like construction and machinery still stay subdued overall. The country’s crude steel production is expected to contract for a while even though increasing 0.8 percent in the first two months to 14.3 million tons, World Steel Association forecast. Concerning the US, its crude steel production features to slip down on the overall inflation which is mixed with the delayed cut of interest rate. That said, the Association says that the steel demand in the US will be very likely to add ahead in line with the constantly expanding demand for infrastructure. The crude steel output was down 2.6 percent in the period January to February totaling 13 million tons.
In the EU market, a combination of negative factors is mixed in terms of crude steel output including automotive business constraints, lack of energy and consequent downturn in housing and automotive sectors. In Germany, for example, housing market and manufacturing slump which added supply crunch and extending construction recession due to the high interest rate and lack of workforce contribute to dampening the economy, but the overall business is now passing the bottom, World Steel Association diagnosed. Germany’s crude steel output added 4.6 percent to 6.2 million tons by February. In Korea, the situations are not in favor of the steel industry across the board under the slowing economy and construction constraints hit by the high interest rate in particular. The country’s first two months crude steel production was a little bit however added 0.2 percent totaling 10.8 million tons.
by swkim
