Global steel production reached an all time high in March
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Worldsteel released their monthly update on global crude steel production on Monday. Total global steel production in March 2017 is estimated at 145Mt, up 4.6% YoY and a new all time high. February’s steel production was revised up to 127Mt, equal to a 8.4% YoY growth on an annualized basis (as Feb last year had 1 more day). YTD steel production of 410Mt is up 6.8%.
China’s crude steel production in March is estimated at 72Mt, a new all time high and up 1.8% YoY. Thus, the YoY growth slowed down substantially from the 7.6% growth in Jan-Feb. This was expected as Chinas steel production had an almost binary change between February and March last year.
Steel production in the rest of the world is estimated at 73Mt, up an impressive 7.5% YoY and also a new all time high.
Klaveness Research says:
Separately Worldsteel released their short range outlook for 2017 and 2018 on Friday last week. They expect a meager 1.3% YoY growth in 2017 as a whole. This implies a negative YoY growth of 0.5% in the last 3 quarters of the year. We think this too far too conservative as we expect healthy growth in global steel production at least through Q2. Worldsteel forecasts a 0.9% growth in 2018.
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.