Global crude steel production fell by 5.9% y-o-y to 158.1 million tonnes (mnt) in June 2022, as per data released by the World Steel Association (WSA). However, output dropped by 7%, m-o-m, against 169.5 mnt in May 2022.
China output down 3.3%
China’s crude steel output stood at 90.7 mnt in June, down 3.3% y-o-y compared with 93.80 mnt in June 2021. Mills in China opted for temporary shutdown for maintenance work amid decreasing profit margins as dull demand weighed on the domestic market. In addition, demand was also impacted by adverse weather conditions i.e. rain in the southern region and high temperatures in the north.
On monthly basis, crude steel production dropped 6% against 96.6 mnt seen in May 2022.
India’s crude steel production up 6.3%
Indian mills churned out 10 mnt of crude steel in June, up 6.3% y-o-y compared to 9.41 mnt in June 2021.
Production volumes fell by 6% m-o-m compared with 10.6 mnt in May. Primary mills have posted decline in crude steel production in Q1FY’23 amid maintenance shutdowns and lower capacity utilization rate. For instance, JSW Steel’s crude was largely stable q-o-q with capacity utilization of 93% (down 5% q-o-q) and JSPL’s production dropped 6% q-o-q to 1.99 mnt in Q1.
Japan’s crude steel production down 8.1%
Crude steel production by Japanese was recorded at 7.4 mnt in June, down 8.1% y-o-y against 8.05 mnt in the corresponding period last year (CPLY). The same fell 9% m-o-m in contrast with 8.1 mnt in May 2022.
The slow recovery in demand from country’s automobile sector and currency depreciation weighed on domestic demand. In addition, Nippon Steel completed the repairs of BF-3 later in June, but keeps it idle considering the weak demand scenario in the market.
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