World crude steel output stable y-o-y in October 2022: WSA

World's crude steel output remained largely stable y-o-y at 147.3 million tonnes (mnt) in October 2022, as per latest data released by the World Steel Association (WSA). However, output dropped 3% m-o-m compared with 151.7 mnt in the previous month.

China's production up y-o-y

Chinese mills churned out 79.8 mnt of crude steel in October, up 11% y-o-y as against 71.89 mnt in the same period last year. However, production fell by 8% m-o-m compared to 86.9 mnt in September. Slower-than-expected demand weighed on steel prices which in turn forced mills to reduce output in order to reduce losses. This led to decrease in output during the month. Moreover, construction activities were largely impacted by cold weather in some of the provinces of the country.

On a cumulative comparison, output fell by 2.2% y-o-y to 860.6 mnt in January-October compared to 879.5 mnt in the year-ago period. Furthermore, decline is expected in steel demand from November with the onset of winter (November-March) in the northern regions.

India's output rises y-o-y

India's crude steel production rose by 2.7% y-o-y to 10.5 mnt in October as against 10.2 mnt in the same period last year. Production volumes registered a rise of 6% m-o-m as against 9.87 mnt in September. Primary steelmaker JSW Steel posted improvement in capacity utilisation at 93%, up 4% m-o. Also, addition in capacities last year have resulted in higher output this year.

During January-October, crude steel production rose by 6.1% y-o-y to 103.8 mnt against 97.47 mnt in the corresponding period last year.

Japan production declines in October

Crude steel output by Japanese mills stood at 7.3 mnt in October, down 10.6% y-o-y as against 8.17 mnt in October 2021. Production volumes rose by 3% m-o-m as against 7.1 mnt a month ago. Japanese mills resumed operations post maintenance shutdowns taken in summer with the expectation of good demand from the construction sector in the near term. However, the shortage of semiconductors still keeps steel demand form the automotive sector under pressure as auto major Toyota Motors might reduce production next month, media reports hinted.

Moreover, output declined by 6.5% y-o-y to 75.2 mnt against 80.09 mnt in January-October 2022.