Steel Industry Takes a Hit as Global Production Drops Below 2022 Levels

China: Global crude Steel production saw a decline of 2.4 percent in April 2023 compared to the same period in the previous year across 63 countries. This dip has also caused year-to-date output to fall 0.4 percent behind last year's pace. China led the production with 92.6 million metric tons of output, accounting for more than 57 percent of Steel made globally. Among the top 10 Steel-producing nations, only three reported increased production from the previous year, with China's output rising by 4.1 percent and India's output increasing by 3.0 percent. Iran's mills showed a marginal increase of 0.1 percent above the breakeven point.

Turkey experienced the most severe decline in production among seven nations, with a drop of 21.3 percent. The country is known for being the primary export destination for ferrous scrap leaving the United States. Brazil saw an 8.8 percent reduction in Steel production in April compared to the same period last year, while Germany's output decreased by 5.8 percent. Meanwhile, Japan, the United States, Russia, and South Korea experienced less severe drops in production, with decreases of 5.3 percent, 4.1 percent, 0.6 percent, and 0.4 percent respectively.

Global Steel demand is expected to rebound by 2.3% this year, despite the underwhelming figures of April. The forecast also indicates a further increase in demand by 1.7% in 2024, although this does not necessarily correspond to an increase in output.