Steel Production Remains Sluggish

World crude steel production for the 66 countries reporting to the World Steel Association (Worldsteel) was 84 million metric tons in February 2009. That number shows a 22 percent decrease in production compared to February 2008.

Although crude steel production showed a continued decrease in most nations in February 2009 compared to the same month in 2008, China was a notable exception.

China’s crude steel production for February 2009 was 40.4 million metric tons, an increase of 4.9 percent compared to February of 2008.

Not all of Asia showed similar strength however. In Japan 5.5 million metric tons of crude steel was produced in February 2009, down more than 44 percent compared to February of 2008. South Korea showed a decrease of nearly 25 percent in its February 2009 figure compared to the same month in 2008.

Weakness in the economy of the United States was reflected by U.S. production of just 3.8 million metric tons of steel in February 2009, a decrease of more than 54 percent compared to the same month last year.

In the European Union, Germany produced 31.6 percent less steel in February compared to a year ago. France’s production was down 35.7 percent and Spain’s was off 35.7 percent compared to the same month last year. Russia showed a similar decline (32 percent).

The 66 nations that report to Worldsteel produced about 2.6 million metric tons less steel in February 2009 compared to January of 2009—83.8 million metric tons in February compared to 86.4 million metric tons in January.