World crude steel output rises 4.1% y-o-y in Feb ’21 on rising demand

Global crude steel production rose 4.1% to 150.20 mn t in Feb ’21 y-o-y, according to data released by World Steel Association. Improvement in demand with the revival of economic activity across the globe led to the increase in production volumes.

SteelMint has analyzed the crude steel production of the top three steel producing nations as mentioned below:

1. China’s production rises by 10.9% y-o-y- China produced 83.00 mn t in Feb ’21, up 10.9% from Feb ‘20. Preparing for the peak activity season in Mar and Apr, the output of steel rebar and wire rods witnessed a major boost from the construction and infrastructure sectors.

However, comparing on a monthly basis the output declined by 8% against 90.20 mn t according to the Jan ’21 data release. Stringent inspection by Tangshan Government for the announced production curbs until Mar ’21 and reduced number of working days in Feb because of CNY holidays kept the output volumes low.

2. India’s crude steel output fell by 3.1 % y-o-y- India, the second largest steel producing nation, produced 9.1 mn t, down 3.1% y-o-y in Feb ’21. Similarly, on a monthly basis the output went down by 9% against 10.00 mn t in Jan ’21.

Sluggish domestic demand coupled with higher steel prices during the month weighed on the production volumes. Furthermore, Competition Commission of India had initiated investigation regarding cartelization by the steel mills, which further dampened buying interest. In a bid to offset these negatives, Indian mills shifted their focus to exports in Feb ’21.

A few major mills reported reduced average capacity utilization at around 93% in Feb ‘21 compared to 96% a month back.

3. Japan’s steel output declines by 5.6% y-o-y- Marking an annual decline of 5.6%, Japanese steel producers churned out 7.50 mn t of crude steel in Feb ’21. In similar lines the output was down by 5.1% against 7.90 mn t a month ago.

Japanese mills are resorting to reducing their excess steel manufacturing capacities in order to honour the resolve of achieving a net zero-carbon emission by 2050. Furthermore, the resurgence of COVID-19 cases in early Jan ’21 and stringent lockdown in the nation until mid-Feb weighed on both steel demand and production volumes during the month.