Global crude steel production slipped in July, mainly because of lower output from China. The latest figures from the World Steel Association show that production across 70 reporting countries fell 0.3% year-on-year to 149.2 million tonnes. India, however, moved in the opposite direction. Indian crude steel production rose 1.9% to 14.4 million tonnes in July, keeping the country among the world's fastest-growing major steel producers.
The numbers to watch
- 149.2 million tonnes: Global crude steel production in July, down 0.3% from a year earlier.
- 76.9 million tonnes: China's July production, down 3.6% year-on-year. The decline in the world's largest steel producer was the biggest factor behind the fall in global output.
- 14.4 million tonnes: India's July crude steel production, up 1.9%.
- 101.1 million tonnes: India's crude steel production during January-July, up 6.1% from the same period last year.
- 1.08 billion tonnes: Global crude steel production during January-July, down 0.6% year-on-year.
India is moving differently
The gap between India and China is becoming more noticeable. China's production fell 3.1% during the first seven months of the year, while India's output increased 6.1%. This does not mean India is replacing China in the global steel market, but it does show that the two markets are currently moving in different directions.
India's growth is also important from a domestic demand perspective. The country is adding steelmaking capacity and consumption is expected to remain supported by infrastructure and manufacturing activity.
What about other producers?
The picture is mixed across major steel-producing countries. US production increased 4.4% in July, Türkiye grew 7%, South Korea rose 6.4% and Japan increased 0.4%. Europe also recorded growth, with EU-27 production up 3.8%.
China remains the number that matters most for the global market because of the sheer size of its production. A sustained fall in Chinese output could tighten the global supply balance, while a return to higher production could put pressure on international steel prices and exports.
For India, the stronger production trend is positive, but mills will still need to keep an eye on demand, imports and raw-material costs.
The key takeaway is simple: global steel production is slowing, but India continues to grow. Whether this gap widens further could become an important factor for the international steel market in the months ahead.
Disclaimer: This article is for information and market discussion purposes only. It is based on publicly available information and should not be considered investment or trading advice.