Global steel production remains largely stable y-o-y in 2023

Global crude steel production reached 18.88 billion tonnes (bnt) in 2023, largely stable against 2022, according to Worldsteel data published on 25 January.

In December, world crude steel production stood at 135.7 million tonnes (mnt), down by 5.3% y-o-y from December 2022 with Chinese output in December sliding by 14.9% y-o-y to 67.4 mnt. However, the largest steel producing country, remained marginally stable to 1.02 bnt in 2023.

China's steel production is expected to slow down in 2024 as mills look to address oversupply and weak profit margins.

India, the second-largest global steel producer, increased production in 2023 by 11.8% y-o-y to 140.2 mnt, while its December output rose by 9.5% y-o-y to 12.1 mnt. Increased government spending on infrastructure projects, such as roads, railways, and urban development, boosted demand for steel, prompting companies to expand their capacity.

NMDC's newly-operational Nagarnar plant is producing around 100,000 tonnes(t) of hot metal and 60,000 t of HRCs, offering competitive prices in the trade segment. Further bolstering domestic production, JSPL commissioned its 5.5 mnt per annum hot strip mill at Angul in late 2023, adding significant capacity to the market. Moreover, major Indian steel producers like JSW Steel and Tata Steel expanded their production capacities through brownfield and greenfield projects.

Production in Japan, the third-largest globally, dipped by 2.5% y-o-y to 87 mnt. In December, Japan's crude steel output rose by 1.1% y-o-y to 7 mnt.

Crude steel production in the US edged up by 0.2% y-o-y to 80.7 mnt in 2023, but rose 7.6% y-o-y to 6.8 mnt in December.

Russia's steel output rose by 5.6% y-o-y to 75.8 mnt in the whole of 2023 and up by 4.3% y-o-y to 6 mnt in December.

Regional variations in 2023:

• Asia and Oceania: The Asia and Oceania remained the dominant force, but growth showed slight growth over 2022. China, despite the production cuts, still accounted for over half of global output.
  
  
• Africa: Africa, buoyed by infrastructure projects and improving domestic demand, witnessed a healthy 5.7% growth in steel production.
  
  
• Europe: Europe, grappling with the energy crisis and war in Ukraine, faced a stark reality. Steel production in the EU-27 plummeted by 7.1% y-o-y showcasing the economic toll of these external factors.
  
  
• North America: The US steel industry witnessed a relatively stable year, with production hovering around 2022 levels.

  However, overall production in the North American region declined by 1.7% y-o-y compared to 2022 volumes.
  
  

Outlook:

The outlook for 2024 remains uncertain. While the global economy is expected to show some signs of recovery, geopolitical tensions and ongoing supply chain challenges pose significant risks. The steel industry will need to navigate this complex landscape with agility and innovation to maintain its long-term growth trajectory.