Global crude steel output fell for a fourth consecutive month in August, mainly due to lower production in China and Japan, the world's biggest and second-biggest producers, industry data showed on Monday.
August output dropped 3 per cent to 132 million tonnes from a year ago, with China output down 3.5 per cent at 66.9 million tonnes, and Japan down 5.8 per cent at 8.8 million tonnes, World Steel Association (Worldsteel) data showed.
China accounts for about half of global steel production. Its output has been falling as its once stellar pace of economic growth slows, leaving it with steel over-capacity estimated at around 300 million tonnes.
The country has been exporting steel at record levels as a result, a factor that has helped pushed global steel prices to their lowest in more than 10 years, with little prospect of a near term recovery.
As a case in point, the data showed global capacity utilization rates fell 3.6 per cent to 68 per cent in August - marking a decline in mills' pricing power because of their collective ability to increase output if demand recovers.
Elsewhere, the data also showed output in the United States, the world's third-largest producer, fell 10 per cent as mills there battle cheap imports and labour disputes, while output in India, the world's fourth-largest producer, rose 2.8 per cent.
India, home to about a billion people and with a growing economy, is one of the few bright spots for world steel demand.
Source: Reuters
- metaljunction »
- Metal News
Metal News & Events
METALJUNCTION PUBLICATIONS
Coal Insights (English) Monthly
Coal Insights is a ready reckoner for anyone associated with coal. This publication is aimed at tracking everything related to coal in India.
India Coal Market Watch(English) Monthly
ICMW is a one-stop source for all news, data and research pertaining to coal demand, consumption, stocks, spot- and long-term prices with respect to the Indian Market.
India Steel Market Watch (English) Monthly
ISMW is a brand new high-end steel market report, covering all aspects of the steel industry in India.
Steel Insights(English) Monthly
Steel Insights delves into various facets of the domestic and global steel industry such as market fundamentals, raw material price trends, price forecasts etc.