Downward trend continues in steel output

Figures for steel production in the 63 nations that submit data to the Brussels-based World Steel Association (Worldsteel) show 2023 starting off at the same slow pace that characterized much of last year.

Of the 10 largest steel-producing nations, only Iran (up 27.7 percent) and China (up 2.3 percent) produced more steel this January compared with January 2022. Joining the roster of nations with declining output is India, though its monthly figure was down by just 0.2 percent compared with January 2022.

At an industry conference earlier this month, India’s Minster of Steel was among those expressing optimism in the growth of steelmaking in that nation, including its ability to consume scrap.

Steel producers in nations with developed economies continued to restrain their output. In the United States, the 6.5 million metric tons of steel made this January decreased by 6.8 percent from the 7.3 million metric tons made one year ago.

Year-to-year output fell by 10.2 percent in Germany and 6.9 percent in Japan. Production in Turkey, the nation’s largest importer of ferrous scrap, fell by an alarming 17.6 percent, and that was before it was struck by earthquakes this month.

Globally, Worldsteel says 145.3 million metric tons of steel were made in January, representing a 3.3 decrease compared with the 155 million metric tons made in January 2022.

Positive output in the steel sector in the U.S. remains hard to detect, based on figures collected by the Washington-based American Iron and Steel Institute (AISI). That association says that in the third week of February (ending Feb. 18), steel production in the U.S. was down 0.6 percent from the prior week and mills were operating at 74 percent of capacity.

One year earlier, the mill capability utilization (capacity) rate was 80.8 percent and an additional 100,000 tons of steel was produced during the comparable week.