Global steel production data
The World Steel Association (or WSA) released the global steel production data for July on August 20. Steel production figures help you understand the steel industry’s supply side dynamics. In this part, we’ll explore how steel production shaped up globally (ACWI) in July.
Global steel production falls
Global steel production has fallen on a year-over-year (or YoY) basis for seven consecutive months. This can be seen in the chart above. In July, the production fell 2.94% YoY, the steepest decline in the last several months. Falling steel production reflects the slowdown in global steel consumption.
Let’s explore how steel production shaped up in major steel-producing regions.
Production has fallen in Japan and Russia
Steel production in Japan (EWJ) and Russia fell 4.9% and 2.8%, respectively, in July. The slowdown in Japanese steel production is possibly due to fewer vehicle sales. The Japanese automotive industry is among the major steel consumers in that country. Toyota Motors (TM) and Honda Motors Company (HMC) are based in Japan.
As for Russia, the country is under an outright recession. Russia has in fact increased steel exports over the last few months to tackle the domestic slowdown.
Steel production in the European Union (or EU) rose 0.3% YoY in July. This is the third consecutive month where steel production has increased in the EU. In the first seven months of the current year, steel production in the EU is up 0.4%.
More steel production in the European Union is especially positive for ArcelorMittal (MT). The company gets more than half of its revenues from European markets.
Indian steel production also rose 1.2% YoY in July. However, the biggest concern for the global steel industry currently is the slowdown in Chinese steel demand. In the next part, we’ll look at how much steel China produced in July.