In H1 CY ’20, the aggregate crude steel production of 64 major steel-producing countries fell by 6% to 873.31 mn t as compared with 928.42 mn t in the corresponding period of CY ’19, as per the data released by the World Steel Association (WSA). The curtailed output & dull demand amid COVID-19 pandemic has been attributed to the decline in production volumes.
On the other hand, the production volume stood at 148.30 mn t in Jun’20, in line with 148.78 mn t produced in May’20.
SteelMint has analysed the crude steel output of top steel-producing nations which are mentioned below:
China- The world’s largest steel producer reported a 1% growth in output in the first half of CY ’20 to 499.01 mn t compared with 491.96 mn t corresponding time frame of the previous year. Manufacturers had started to ramp-up their production by early Apr’20, when the lockdown was lifted and domestic demand had started to improve.
However, a production curb with strict supervision was announced in Tangshan province from 1 Jun’20 until 30 Sep’20 to reduce the air pollution. This resulted in a 1% fall in production volumes to 91.58 mn t in Jun’20 as against 92.27 mn t in May’20.
India- Crude steel output plunged by 24% to 43.13 mn t in H1 CY ’20 over 56.93 mn t in H1 CY ’19 since major steel manufacturers had curtailed/halted their production amid announced lockdown towards the end of Mar’20 in order to fight against the pandemic.
On the other hand, the production volumes increased by 20% in Jun’20 to 6.92 mn t compared with 5.77 mn t in May ’20. Resumption of production by mills after the announcement of the unlock phase in India and fewer logistical restraints has led to an increase in output.
Japan- Country’s production volume declined by 17% on the year in H1 CY ’20 to 42.21 mn t compared with 51.09 mn t in the first half of the preceding year. Major steelmakers like Nippon steel and JFE steel have halted their production due to the pandemic.
In similar lines, the production volume fell by 5% on the month to 5.60 mn t in Jun’20 as against 5.92 mn t a month ago.
United states- The crude steel output summed up to 36.20 mn t in H1, declining by 18% on the year over 44.31 mn t in the corresponding period of CY ’19. However, on a monthly basis the producers reported a marginal 1% fall in production in Jun ’20 to 4.75 mn t in comparison with 4.79 mn t a month ago.
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