May output falls despite continued Chinese growth
Crude steel production in the 64 countries reporting to the World Steel Association (worldsteel) fell -8.7% on-year in May to 148.78 million tonnes. The association reiterates, however, that many figures are estimates and likely to be revised next month due to the Covid-19 pandemic impact.
China was again one of few nations to record output growth in May, as production rose 4.2% to 92.27mt. Vietnam also saw output increase, by 11.4% to 1.95mt. India, Japan and South Korea reported a -39%, -32% and -14% fall respectively to 5.77mt, 5.92mt and 5.39mt.
The EU28 saw output fall -27% in May to 10.49mt. German output is estimated to have declined -19% to 2.85mt, while Italian output is estimated to have slumped -44% to 1.25mt. Spanish output fell -34% to 833,000t and French production declined -37% to 784,000t.
Turkish output slumped -26% to 2.27mt.
US production slumped -37% to 4.79mt, while Brazilian output fell -23% to 2.19mt.
CIS output fell -7.6% in May to 8.17mt, with Russian production estimated to be down 5% to 6mt and Ukrainian output falling -10% to 1.64mt.
PIG IRON OUTPUT REDUCTION LESS ACCENTUATED Global pig iron output in May totalled 107.42 million tonnes, 6.64% up on-month, but it was still -6.6% down on-year. The year-to-date output decline deepened from -2.6% in January-April to -3.5% on-year in January-May, worldsteel data shows.
Asia, the CIS and South America all increased output in May, but Europe and North America produced less pig iron than in April and a year ago. Asia's output increased by 7.4% on-month to 90.97mt in May, although it was still down -3.1% on-year. JanuaryMay pig iron output in Asia was also down on-year by just -1.4%.
China duplicated its April monthly pig iron output rise of 7.4% in May, reaching a total of 77.31mt, also gaining 2.4% on-year. To date, China's pig iron output is up 1.5% on-year to 356mt. India's output also rebounded in May, having fallen by almost half in May. At 4.49mt it was 37.6% up on-month but still -30.1% down on-year.
Japan reduced output again in May, following the April decline of -18.4% on-month, and produced 4.4mt of pig iron, -10.2% down on-month and -32.7% on-year. South Korea's output of pig iron rebounded in May after the -10.3% April fall, and at 3.48mt was 5.9% up on-month, but -14.4% down on-year.
At 5.15mt, EU-28 output fell in May for the fifth consecutive month, losing -5.74% onmonth and -33% on-year. This was despite all major producing countries including France, Germany, Hungary, Italy, Poland, Spain and UK increasing output slightly on-month. The decline was on the back of US Steel Kosice’s blast furnace revamp and Liberty Galati cutting output in response to lack of demand. As a result, fivemonth EU output was down -17.7% to 31.5mt.
CIS pig iron output was up 10.4% on-month and 3.6% on-year to 6.4mt in May, and fivemonth output rose 1.3% on-year at 31.39mt. Kazakhstan, Russia and Ukraine all ramped up production, feeding China's continuous demand for the material.
North America's own pig iron output, meanwhile, declined -0.6% on-month and -38% onyear in May to 1.71mt. The decline was largely on the back of the US' -3.3% on-month fall in production to 1.07mt, as both Canada and Mexico slightly increased their respective outputs.
South America ramped up May pig iron output by 0.8% on-month to 1.81mt, on the back of Brazil’s output increase. South America's largest ironmaking nation produced 1.66mt of pig iron in May, 1.8% up on-month but -27.5% down on-year.
Source Kallanish