World crude steel output falls 3% y-o-y in August: WSA

The world's crude steel output fell by 3% y-o-y to 150.6 million tonnes (mnt) in August 2022, as per the latest data released by the World Steel Association (WSA). However, output rose marginally by 1% m-o-m compared with 149.3 mnt in the previous month.

China's production up marginally y-o-y
Chinese mills churned out 83.9 mnt of crude steel in August 2022, up 1% y-o-y as against 83.48 mnt in the same period last year. Mills resumed their operations eyeing better demand in the domestic market as September and October months will see the peak season for construction activities.

Also, China has started exploring new markets for exports as India was less active after the imposition of 15% export duty on various steel products by Indian government in May. For instance, steel exports from China have increased by 22% y-o-y to 6.15 mnt in August 2022 from 5.05 mnt in August 2021.

Production rose by 3% m-o-m as compared to 81.4 mnt in July 2022. However, on a cumulative comparison, output fell by 5.7% y-o-y to 693.2 mnt in January-August period compared to 655.8 mnt in the year ago period.

India's output up y-o-y
India's crude steel production rose marginally by 1.2% y-o-y to 10.2 mnt in August as against 10.08 mnt in the same period last year despite subdued domestic as well as overseas demand. However, with the new capacity additions by primary mills, production volumes have increased slightly. In addition, since the government has imposed 15% export duty on clad or plated non-alloyed flat steel products in late-May 2022, the country's export volumes have registered a continuous fall for the third consecutive month in a row.

For instance, steel exports have almost reduced to a one-third to 0.56 mnt in August from 1.49 mnt seen in May 2022. The same has plunged by a whopping 80% y-o-y as against 2.69 mnt in August 2021.

Production volumes registered a marginal rise of 1% m-o-m as against 10.1 mnt in July. During January-August 2022, crude steel production rose by 7.1% y-o-y to 83.5 mnt against 77.96 mnt in the corresponding period year ago.

Japan production decline y-o-y in August
Crude steel output by Japanese mills stood at 7.3 mnt in August, down 7.4% y-o-y as against 7.88 mnt in August 2021. The recovery of domestic demand remained slow amid issues related to component delivery in the automobile sector. In addition, the low season for steel have kept the overseas demand under pressure. This in turn, has resulted in lower output from mills during August.

Production volumes remained largely flat m-o-m in August, while the same declined by 5.2% y-o-y to 60.7 mnt during January-August 2022.