overhead view of steel inventory

Global Steel Production Rose 3.3% for October

Global raw-steel production rose 2.6% from September to October, totaling 136,522,876 metric tons, with similar percentage increases in most of the major steelmaking nations and regions tracked by the World Steel Association. The year-over-year comparison is even higher for October, with a 3.3% higher in October 2016 than in October 2015.

China produces nearly half of all the world’s steel. While it has been working to reduce its excess capacity, its October output once again conformed to global trends.

For the year-to-date, however, global raw-steel production is still slightly (-0.69%) below the January-October 2015 total.

World Steel Assn. tracks monthly raw-steel output and capacity utilization rates for 66 countries. Raw (or crude) steel is the output of basic oxygen furnaces and electric arc furnaces that is cast into semi-finished products, such as slabs, blooms, or billets.  The World Steel Association reports tonnage and capacity utilization data for carbon and carbon alloy steel in 66 countries; data for production of stainless and specialty alloy steels are not included.

Recently World Steel issued a new short-range outlook for steel demand, and forecast that global steel demand will increase by 0.2% to 1.501 billion metric tons in 2016, having declined 3.0% in 2015. For 2017, World Steel forecasts that global steel demand will grow by 0.5% and will reach 1.51 billion metric tons.

As for capacity utilization, the association reports that during October it fell 0.6% from September to 69.6%. In October 2015, the global raw-steel capacity utilization was 68.2%.

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