World crude output down by 3% in Jan-Sep '20

The crude steel output of 64 steel producing countries in (Jan-Sep) 9M CY '20 aggregated to 1,347.44 mn t, declining by 3% as against 1,392.25 mn t in CPLY, as per recent data released by World Steel Association (WSA).

However, production volume was largely stable at 156.36 mn t in Sep '20 compared with 156.24 mn t in Aug '20.

SteelMint has analysed the crude steel output of top steel-producing nations which are mentioned below-

China's steel output continued to grow in 9M- In the 9M CY '20 Chinese steel mills have collectively produced 781.59 mn t of crude steel, up by 4% in comparison with 748.14 mn t in the similar time frame of CY '19.

• The mills have been running on increased capacities since Apr '20 when the stringent lockdown norms were eased.
  
  
• Improved demand from the construction and automobile sector post the Jan-Mar '20 period supported the growth in the production volumes.
  
  
• Also, higher steel prices motivated mills to increase their output.
  
  

In Sep '20, the volumes declined slightly by 2% to 92.56 mn t as against 94.85 mn t in Aug '20, meanwhile, the Tangshan province govt has announced another round of production cut from Oct '20 until Mar '21 restricting usage of blast furnace activities by 45% for B and C grade mills to control air pollution.

India's steel output down by 16% in 9M- Indian steel manufacturers have collectively churned out 70.20 mn t of crude steel in 9M CY '20, declining by 16% CPLY as against 84.06 mn t.

Announced lockdowns due to Covid concerns led to- reduced capacity utilization rate, maintenance shutdowns, and absence of migrant labours in Apr-Jul '20 months which has weighed on the production volumes of the steel manufacturers.

On the month, in Sep '20 the volume stood at 8.52 mn t largely stable against 8.48 mn t a month ago.

• Mills have been working at improved capacities since the unlock phase was announced in July '20.
  
  
• Buying increased in the domestic market due to pent-up demand since Aug '20 after the muted Apr-Jun quarter.
  
  
• Steel demand majorly improved from the white-and-yellow goods and automobile sector in the past couple of months.
  
  

Japan reported a 19% decline in production volume in 9M- The mills in Japan produced 19% less crude steel at 61.21 mn t in 9M CY '20 in contrast with 75.63 mn t in CPLY. Slow demand recovery in the domestic market along with increased competition in the overseas market weighed on the production volumes of steel producers.

However, on the month the production volumes rose slightly by 1% to 6.49 mn t in Sep '20 over 6.45 mn t in Aug '20.