Global steel output drops sharply year on year

Steel production in the 70 countries that report to the Brussels-based World Steel Association (Worldsteel) totaled 151.4 million metric tons (mmt) in June, representing a 5.8 percent decrease compared with June 2024.

Global steel output also saw a 4.8 percent month-on-month decline this June.

Output in China, where more than 50 percent of the world’s steel currently is made, reflected the wider global trend in June, dropping by 3.9 percent month on month and by 9.2 percent compared with June 2024.

A lasting decline in steel output in China likely would be seen as good news by steelmakers in several parts of the world who claim subsidized, low-priced steel imports from China have directly or indirectly affected pricing and competitiveness in their home markets.

If steelmakers in other parts of the world are going to pick up the slack created by reduced Chinese output, the June figures indicate India and the United States may be among the beneficiaries.

According to Worldsteel, steel output in India rose by 13.3 percent in India this June compared with June 2024 and by 4.6 percent in the U.S.

As measured by June figures from Germany and Russia, that part of the world remains mired in difficult economic circumstances. German steel output fell by 15.9 percent this June compared with June 2024 and Russian production sank by an estimated 7.4 percent.

While India’s rising output can provide good news for recycled steel processors and traders in the U.S. and Europe, melt shop conditions in Turkey remain tepid so far this year.

In Turkey, which hosts predominantly electric arc furnace mills, output was down by 3.5 percent this June compared with ayear earlier, and year to date has declined by 1.5 percent, according to Worldsteel.

The news from Turkey this June also was discouraging on a month-to-month basis, with the nation’s 2.9 mmt of output during the month representing a 6.4 percent drop from the 3.1 mmt of steel made this May.

In addition to China and Turkey, other nations that experienced a month-on-month decline in steel output this June compared with the prior month include Japan, the U.S., Russia (estimated), South Korea, Germany and Iran. The final nation on that list recorded an estimated 35.3 percent drop in monthly output.

Only two of the 10 largest steel producing nations made more of the metal this June compared with the prior month: India and Brazil.