Weak demand continues to shape the results for steelmakers
worldwide, and especially in the U.S., Europe, and Japan, with inflation and
rising interest rates affecting industrial and construction activity.
Global raw-steel production decreased in November
for the third consecutive month, down nearly -5.9% from October to 139.1
million metric tons for the 64 countries reporting to the World Steel Assn. The
top nine steelmaking nations reported lower tonnage than for October, though
the U.S. and European producers are notably trailing their year-over-year
results for November. Through 11 months of production for 2022, total global
output of raw steel stands at 1,691.40 for the January-November period, which
is -3.7% lower than the comparable figure for January-November 2021.
The YTD total is outpaces World Steel’s recent short-term
outlook for steel demand, published in October, which forecast a
2022 reduction of -2.3% from 202 – down to 1.796 billion metric tons.
The decrease in global steel demand, according to
World Steel, is the result of multiple factors reducing industrial and
construction activities worldwide, including inflation, a tightening money
supply, supply shortages, war, and various other factors. Steelmakers in most
regions of the world have been adjusting output levels since 2021, in order to
adapt to the worsening conditions.
World Steel
Assn.
Global raw-steel production
over an 18-month period, June 2021 through November 2022. The latest monthly
total shows raw-steel production was 139.1 million metric tons during November
2022, -2.6% less than the November 2022 total. Through 11 months of production,
the 2022 global steel output is 1.69 billion metric tons, or -3.7% lower than
the January-November 2021 total.
Two exceptions to the trend are China and India,
the two largest steelmaking nations: China’s steel output appears to have
leveled off, after pronounced output cuts during 2021; and India’s steel output
has been remarkably steady during the past two years.
The monthly report by World Steel tracks the total
of carbon steel produced in basic-oxygen or electric arc furnaces and cast into
semi-finished forms like billets for bar and rod products; slabs for flat
products; or blooms, for beam and pipe products. Specialty and stainless steel
volumes are accounted for separately.
China’s steelmakers cut their monthly output by
-7.1% from October to November, producing 74.5 million metric tons, though that
figure is 7.3% higher than the November 2021 tonnage. Through 11 months of
activity for 2022, the Chinese industry has produced 935.1 million metric tons
of raw steel – which is a -1.4% drop from last year’s 11-month total.
The Indian steel industry produced 10.4 million
metric tons during November, -1.0% from October. The new figure is 5.7% higher
than the November 2021 result, and brings India’s year-to-date output to 114.2
million metric tons, 6.0% above the January-October 2021 total.
The world’s third largest steelmaking nation,
produced 7.2 million metric tons during November, down -1.4% from the October
figure and -10.7% from the November 2021 result. Through 11 months of activity,
Japanese steelmakers have produced 82.3 million metric tons, or -6.9% less than
the total for the comparable period of 2021.
U.S. steel producers’ output fell -4.7% from October to 6.4
million metric tons (7.05 million short tons) in November, and that represents
a -10.7% decrease from their November 2021 result. For the year-to-date, U.S.
steelmakers have produced 74.4 million metric tons (82.01 million short tons) –
a total that is -5.5% less than last January-November’s tonnage.