Global steel production growth slows in February, but remains strong

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Worldsteel released their monthly update on global crude steel production yesterday. Total global steel production in February 2017 is estimated at 126.6Mt, up 4.1% YoY.

China’s crude steel production in February is estimated at 61.2Mt, up 4.6% YoY.  Steel production in the rest of the world is estimated at 65.4Mt, up 3.6% YoY.

Graph Global steel production growth YoY

Klaveness Research says:
While this was the tenth month in row with positive YoY growth in global steel production, it was also the first time in 10 months that the YoY growth slowed down. China’s YoY growth slowed from 6.9% in Jan to 4.6% in Feb. The YoY growth in the rest of the world slowed from 8.1% in Jan to 3.6% in Feb.

Graph Global steel production per month

We expect the growth in global steel production to continue in the coming months as our leading indicator for growth continues to accelerate, see previous article. However, as we saw an almost binary change in China’s steel production growth between Feb and March last year (From -4.0% to +2.9%), the base from last year increases considerably in March, which will lower the YoY growth further.

The growth in global steel production is broad based, which also is in line the broad based recovery we have seen in Manufacturing PMI’s.