Global steel production increases 23% in April, helped by high prices
Global crude steel production jumped 23% year-over-year in April, according to data from Friday, and production is expected to continue rising in the coming months, as coronavirus restrictions end. relieve and high prices encourage production.
Global steel production soared to 169.5 million tonnes last month, according to data from the World Steel Association industry group, but the percentage increase was overstated due to closures a year ago when the pandemic was at its peak.
âThe year-over-year growth rate is flattered by the base effects,â said Caroline Bain, chief commodities economist at Capital Economics, in a note.
“That being said, by our calculations, daily global steel production rose nearly 3.5% month-over-month in April … largely due to the rise and fall. rising world steel prices. “
The month-over-month drop in production in India was offset by large gains in China, Russia and Brazil, she added.
The production of crude steel in China, the world’s largest producer and consumer of metal, rose 7.5% in April from March, data from the World Steel Association showed, despite efforts by authorities to reduce production to reduce carbon emissions.
The renewal of restrictions in the event of a pandemic was probably behind the 14.4% month-on-month decline in Indian steel production and 2% in European Union production, Bain said.
The association, a producer group that accounts for about 85% of global steel production, last month revised its forecast for global demand to a 5.8% increase this year.
“A number of capacity expansions and restarts have been announced, particularly in the United States and India. Therefore, we expect global steel production to increase this year, ultimately leading to lower prices. regional awards, âBain said.
Our Standards: The Thomson Reuters Trust Principles.