According to the data released by World Steel Association (Worldsteel), global crude steel production for the 66 countries reporting to Worldsteel improved 24.2% year over year to 107.5 million tons in November 2009. Crude steel production has been showing a positive growth rate since September 2008. Total crude steel production in the 66 reporting countries for the first 11 months of 2009 was 1,090 million tons, a decrease of 10.8% from the same period of 2008.
Steel production had peaked in July this year on the back of a moderate rise in demand and the resumption of idled facilities by producers. Crude steel production in China, the largest producer and consumer of crude steel, was 47.3 million tons in November 2009, up 37.4% from November 2008. Russia’s crude steel production for the month expanded 42.6% to 5.3 million tons. Ukraine produced 2.7 million tons in November 2009, 67.1% higher than in the same month last year. Turkey produced 2.1 million tons of crude steel in November 2009, a 67.1% increase year over year.
However, steel production in Japan increased below 1% year over year to 8.9 million tons in November 2009. South Korea showed an increase of 7.5% from November 2008, producing 4.3 million tons of crude steel in November 2009. In the European Union, Germany’s crude steel production was 3.5 million tons in November 2009, an increase of 8% from November 2008. Italy produced 1.9 million tons in November 2009, down 17.2% from the year ago period. The U.S. produced 6 million tons of crude steel in October 2009, an increase of 26.9% compared to the same month last year.
Key steel consuming industries such as auto, shipbuilding and construction have been experiencing weak demand in the last quarters, forcing global steelmakers to lower production levels. U.S. Steel Corp. (X) had slashed production by almost 62% during the second quarter of 2009, while Korean steelmaker POSCO (PKX) was forced to reduce production for the first time in its history. POSCO curtailed production by about 15% during the period.
World crude steel capacity utilization has been steadily improving since bottoming in December 2008. In November 2009, the world total capacity utilization ratio was 75.0%, a slight decline from 76.9% in the previous month. However, capacity utilization improved 10.4% year over year.
Read the full analyst report on “X”
Read the full analyst report on “PKX”
Zacks Investment Research
