World crude steel production for the 66 countries reporting to the World Steel Association (worldsteel) was 136 million tonnes (Mt) in June 2016, the same figure as June 2015.
World crude steel production in the first six months of 2016 was 794.8 Mt, a decrease of -1.9% compared to the same period of 2015. The CIS showed an increase of 0.6% whereas both North America and the Middle East reported negative growth of -0.6% and -3.2% respectively in the first half of 2016. Crude steel production in Asia declined by -1.0% and it decreased by -6.1% in the EU 28. South American production reduced considerably by -13.8% in the first six months of 2016 compared to the same period of 2015.
China’s crude steel production for June 2016 was 69.5 Mt, an increase of 1.7% compared to June 2015. Elsewhere in Asia, Japan produced 8.8 Mt of crude steel in June 2016, an increase of 2.7% compared to June 2015. South Korea’s crude steel production was 5.5 Mt in June 2016, down by -6.7% on June 2015.
In the EU, Germany produced 3.7 Mt of crude steel in June 2016, a decrease of -2.1% compared to June 2015. Italy produced 2.0 Mt of crude steel, up by 5.9% on June 2015. France produced 1.3 Mt of crude steel, down by -5.1% compared to June 2015. Spain produced 1.1 Mt of crude steel, down by -13.7% compared to June 2015.
Turkey’s crude steel production for June 2016 was 2.9 Mt, up by 2.0% on June 2015.
In June 2016, Russia produced 5.8 Mt of crude steel, up by 2.5% over June 2015. Ukraine produced 1.8 Mt of crude steel, down by -8.6% compared to the same month in 2015.
The United States produced 6.8 Mt of crude steel in June 2016, a decrease of -0.1% compared to June 2015.
Brazil’s crude steel production for June 2016 was 2.5 Mt, down by -8.5% on June 2015.
The crude steel capacity utilisation ratio of the 66 countries in June 2016 was 69.4%. This is 3.3 percentage points lower than June 2015. Compared to May 2016, it is 2 percentage points lower.
All about China of course. The second half will replicate last year’s fall away through not so steep. New lows next year.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
