World crude steel output down 5% y-o-y in Apr’22: WSA

World’s crude steel production dropped 5.1% y-o-y to 162.7 million tonnes (mnt) in April 2022, as per latest data released by the World Steel Association (WSA). However, on a monthly basis, production rose marginally by 1% compared to 161 mnt in March 2022.

China’s crude steel production down 5% y-o-y

China’s crude steel production stood at 92.8 mnt in April, down 5.2% against 97.89 mnt in the same period last year. Increasing Covid cases in mid-March and subsequent lockdowns in many provinces resulted in a decrease in production. The government’s intent on achieving net-zero carbon emission by 2050 has been another prime reason. Moreover, the drop in buying interest in the overseas market weighed both on offers and production volumes.

India’s crude steel production up 6% y-o-y

India’s crude steel production rose by 6.2% to 10.1 mnt in April compared with 9.51 mnt in April 2021. Increase in buying interest in the overseas market during the January-April period boosted exports for flat steel products. During the first four months, flat steel exports by Indian mills were recorded at 4.01 mnt, a rise of 13% against 3.54 mnt in the same period last year.

However, production declined by 7% m-o-m in April in comparison with 10.9 mnt in March. Production dropped mainly due to coal shortage and union strikes by labours, leaving Rashtriya Ispat Nigam Ltd (RINL) operating with only one blast furnace in early-April. Moreover, low buying interest in domestic and overseas markets amidst continual decline in prices also put a dent in the output levels of major steel producers.

Japan’s crude steel output down 4% y-o-y

Crude steel production by Japanese mills stood at 7.5 mnt in April, down 4.4% against 7.85 mnt in the corresponding period last year (CPLY). On a monthly basis, the same declined by 6% from 8 mnt in March.

Steel majors are primarily focused on quenching the domestic requirements from the core sectors such as shipbuilding and heavy engineering. Also, the government’s intent on reducing excess steel production capacities and the target for net zero carbon emission have been the prime drivers behind reduced output levels.