Global Steel Production growth remains high in August
Worldsteel released their monthly update on global crude steel production today. Total global steel production in August 2017 was estimated at 144Mt, up 6.7% YoY, on par with both the nominal production and the YoY growth in July.
Chinese steel production in August was estimated at 75Mt, up 8.7% YoY. While this was down from a YoY growth of 10.3% in July it was the second highest YoY growth in many years. Year to date steel production in China is estimated up 5.6% from the same period in 2016.
Steel production in the rest of the world was estimated at 69Mt, up 4.5% YoY. This was up from a YoY growth of 3.2% in July. YTD steel production in the rest of the world is estimated up 4.2%.
Klaveness Research says:
Worldsteel’s production figures for China is purely based on China’s official statistics published by the NBS. As we previously have pointed out, these growth numbers do not reflect the growth in total Chinese steel production, but rather the growth rate of the official mills. As China has a market share of more than 50% in global steel production this also distorts the growth rate in global steel production. However, while the growth rate in July and August (and to some degree also in prior months) is overstated, the underlying trend in Chinese steel production remains supportive. It is also positive that growth in steel production in the rest of the world has been accelerating in the last three months.