May’s global steel production
Previously, we looked at the recent trend in US steel production. In this part of the series, we’ll look at May’s global steel production data, which are released on a monthly basis by the World Steel Association.
- Global steel production rose 2.0% YoY (year-over-year) to 143.3 million metric tons in May 2017. In the first five months of 2017, global steel production rose 4.7% compared to the same period last year.
- China produced 72.2 million metric tons of steel in May, which represents a 1.8% YoY rise. However, Chinese steel production fell slightly from the previous month when the country’s steel production hit a monthly high.
- The European Union’s May steel production rose 2.0% YoY to 14.7 million metric tons. Europe is ArcelorMittal’s (MT) largest market. United States Steel (X) also has operations in Central Europe. In contrast, AK Steel (AKS) and Nucor (NUE) get most of their revenues from the US market (IWM) (RUT-INDEX).
- India’s steel production rose 6.4% YoY in May. It has risen 7.4% YoY in the first five months of 2017. Most analysts see India as the bright spot for global steel markets. However, India might not be able to immediately fill the void left by the slowdown in Chinese growth rates.
We’ve seen some stabilization in Chinese steel prices this month. In the next part, we’ll look at the recent movement in Chinese steel prices and analyze the implications for the global steel markets.