World crude steel output rises by 3% in July on demand recovery

The crude steel output of the 64 steel manufacturing countries in Jul '20 summed up to 152.69 mn t, up by 3% m-o-m as against 148.30 t in Jun '20, as per the data released by the World Steel Association. The output showed an increase as the COVID pandemic related barriers were eased for the manufacturing and allied activity sectors in the countries across the globe resulting in demand recovery in the end-user segment.

On the other hand, on a yearly basis, the same fell by 3% in Jul '20 as compared to 156.68 mn t in Jul '19. However, since May, the steel producers had started a gradual ramp-up of production following the rising demand after a long period of disrupted activities in the downstream steel-consuming sectors.

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

China- Nation's steel mills collectively produced 93.36 mn t of crude steel in Jul '20, marginally up by 2% on the month as against 91.58 mn t in Jun '20. China's crude steel output set a record high of 93.36 mn t in Jul '20, besting the previous high of 92.2mn t set in May '20, with production ramping up close to peak levels on the back of robust downstream demand.

On a yearly comparison, the same increased by 9% over 85.60 mn t in Jul '19. The mills had gradually started to ramp up production on the rising demand and increasing margins in the domestic market.

India- Country's major steel producers churned out 7.15 mn t of crude steel in Jul '20, increasing by 3% as against 6.92 mn t in Jun '20. Recovery in auto and infrastructure steel demand led to increased output of mills.

However, the same declined significantly by 25% on a yearly basis in Jul '20 when compared with 9.49 mn t a year ago.

Japan- Crude steel output summed up to 6.05 mn t in Jul '20, rising by 8% on a monthly basis as against 5.60 mn t in the previous month. Steel demand in Japan has been recovering and steel mills have started ramping up its production in response to demand recovery.

On a yearly basis, the same fell by 28% in Jul '20 in comparison to 8.39 mn t in the preceding month.

United States- The crude steel output went up by 10% m-o-m basis in Jul '20 to 5.24 mn t when compared with 4.75 mn t in Jun '20. On the other hand, the same fell by 29% on the year over 7.42 mn t in Jul '19.