In 2010, worldwide crude steel output totaled 1.4 billion metric tons, a 15 percent increase over 2009 and a new record for annual global steel production, according to the World Steel Association.
In the United States, crude steel output rose to 80.6 million metric tons in 2010. This is an increase of 38.5 % over 2009. Imports of finished steel increased almost 34% to 18.9 million net tons in 2010 over CY2009. Finished steel import market share continues to maintain levels above 20 percent. (AISI)
According to WorldSteel, steel output from China, the world’s largest steel producer, reached 626.7 million metric tons in 2010. This represents a 9.3% increase over 2009. this level represents a decline of about 2.4% in China’s global production share.
We expect that steel prices will remain strong in light of the continued U.S. and global financial recovery. Most news items that could develop- such as the latest major flooding in Australia’s Coal Mining areas- will be bellwethers for higher prices.
Photo credit
Tag: China Steel Production
By our reckoning, China has produced over 11 times more steel in June 2009 than the US. Apparently their stimulus is working. We question whether their environmental laws are as effective.
China produced 266.6 million tonnes of crude steel in the first six months of 2009, this is 48.6% of total world production of 549 million tons, according to a report by the World Steel Association.
According to that association, for the month of June 2009, the US produced 4.4 million tonnes, down 46.9% from June 2008. China produced 49.4 million tonnes for June 2009, up 6% from June 2008’s 46.6 million tonnes. The Chinese crude steel production figure is 11.23 times the US Crude steel production reported by WSA.
Globally, the total steel production in the 66 countries tracked by WSA decreased 21.3% for the first six months of 2009 compared to same period 2008.
What does not seem to be working is any kind of environmental restraint: see the two page fact sheet on China Steel Industry Environmental Record here:
Or get the full report.
We expect to see steel surcharges and prices on the climb as manufacturing economic activity starts to recover. The current 2.8 times increase for the scrap surcharge compared to June does not bode well for moderation in increases going forward.
The scrap surcharge for August 2009 was announced to be $7.00 by Republic Engineered Products. The scrap surcharge for carbon and alloy steel cold finshed bars was $2.50 per hundred weight (cwt) when we prepared the June Materials Impact Report.
US raw steel production is up slightly at ~3% over prior week according to AISI. Exports to Turkey and lack of manufacturing activity in North America to generate new scrap are possible factors.
Chinese steel production has been on a tear- up 10% in June according to various press reports.