World crude steel output fell by 6.5% y-o-y to 149.3 million tonnes (mnt) in July, 2022, as per data from the World Steel Association (WSA). Similarly, output dropped by 6% m-o-m, compared with 158.1 mnt in the previous month.
China production down
Chinese mills churned out 81.4 mnt of crude steel in July, down 6.4% y-o-y as against 86.97 mnt in July, 2021. Mills have incurred losses due to dull demand for steel in the off-season. This has forced them to lower output by opting for maintenance shutdowns. Moreover, as China aims to reduce carbon emissions to achieve carbon neutrality by CY’30, production volumes are likely to remain under pressure.
On a monthly basis, production volumes declined by 10% compared with 90.7 mnt in June.
India’s production up over 3% y-o-y
India’s crude steel production rose 3.2% y-o-y to 10.1 mnt in July as against 9.79 mnt in the same period last year. Last year, disruptions due to COVID-19 and lockdowns had impacted production. However, the mills had pushed up volumes for exports to bolster margins.
However, on a monthly basis, production volumes remained largely unchanged against 10 mnt in June.
Japan’s output down 8.5% y-o-y
Crude steel output by Japanese mills stood at 7.3 mnt in July, down 8.5% y-o-y as against 7.98 mnt in July, 2021. Steel demand was majorly impacted by the delay in delivery of automotive components, resulting in lower production by automobile manufacturers. Moreover, slow exports and COVID-19-related disruptions also impacted output during the period.
Also, leading steelmaker Nippon Steel has posted a 15% y-o-y decline in crude steel output at 8.69 mnt in Q1FY’23 as against 10.18 mnt in Q1FY’22.
On a monthly basis, production volumes dropped marginally by 1% compared with 7.4 mnt in June.
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