Global steel production remains flat in Jan-Nov at 1,468 MT

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New Delhi | Published: December 23, 2016 6:09:32 AM

Global steel production remained flat in the first 11 months of the current year at 1,468 MT even as four out of five major steel producing nations improved their output in November over the same month last year.

Global steel production remained flat in the first 11 months of the current year at 1,468 MT even as four out of five major steel producing nations improved their output in November over the same month last year.

With 739 MT, China contributed the maximum to the global production during the January-November period followed by Japan at 96 MT, India at 88 MT, the US 72 MT and Russia at 65 MT. However, barring China and India, the other three major producing nations reported a decline in production during the period over the same period last year, World Steel Association (WSA) data revealed.

Global steel production was at 1,463 MT during the January-November period of last year in which half of the contribution came from China. Japan produced 97 MT, India 82 MT, the US 73 MT and Russia 65 MT.

Though production improved, India is likely to end the current year as the world’s third largest steel producer, same as last year. With new capacity addition and growth in output, India had gone past the US as the third largest steel producer in 2015.

Industry sources said with the current rate of production growth and expected additional capacity to go on stream in the coming months, India may overtake Japan as the second largest steel producer in 2017 taking advantage of the dwindling output by Japan.

Japan produced less steel in November this year than in the same month last year. On the other hand, India’s production growth rate at 10.7% has been the highest among major producing nations. China, the US, and Russia also produced more steel in November this year compared with the same month last year.

Overall, global production grew by 5% in November to stand at 132 MT. China produced 66 MT steel during the month. Japan produced 8.6 MT and India produced 8 MT. The US and Russia produced 6.2 MT and 5.9 MT steel respectively during the month.

Emkay Global Financial Services said world capacity utilisation continued to climb up Year-on-Year for the fourth consecutive month to 69.6% in the month of November, witnessing sharpest rise of 250 bps in last more than two years.

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