Global steel production is falling again

Photo: Getty Images (File)

Global steel production fell for third consecutive month in June, although remained above levels seen in the latter parts of 2015.

According to World Steel Association, which represents around 85% of the world’s steel production, global production slipped to 133.7 million tonnes in July, down 1.7% on the 136 million produced in June.

Despite the monthly slide, production levels were 1.4% higher than the levels of a year earlier. In the first seven months of the year, production totalled 929.6 million tonnes, down 1.2% from the same period in 2015.

China, the largest producer globally, saw production levels slip to 66.8 million tonnes in July, down from 69.5 million tonnes in June. From a year earlier it grew by 2.6%.

Excluding China, production levels worldwide came in at 66.94 million tonnes, up from 66.25 million tonnes in June.

The chart below from World Steel looks at production levels globally, measuring not only monthly output but also the change on the levels of a year earlier.

There was also a noticeable decline in capacity utilisation recorded during the month with World Steel’s capacity utilisation ratio dropping to just 68.3%, down heavily on the 72% level seen in June and unchanged from the levels of a year earlier.

World Steel notes that the ratio is calculated based on crude steel production information available at worldsteel and OECD capacity estimates.

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