Global steel production declined again in June 2020. According to the World Steel Association, the total output of steel reached 148.295 million tonnes, which is 7% below the June 2019 result and 0.3% less than in May 2020, according to issue 1386 of AK&M Information Agency's “RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Ferrous and Non-ferrous Metallurgy” monthly paper.
873.134 million tonnes of steel were produced in the first half of 2020, which is 6% below the result achieved in January-June 2019. China where production recovered as early as in March after the pandemic was curbed accounted 57.2% of the total 6-month output. China’s contribution to the global steel output is consistently growing, with a new record high of 93.36 million tonnes of steel achieved in July.
Steel production in Russia decreased by 4.8% YoY to 5.6 million tonnes in June, which earned it the fifth place among steel producers (according to the WSA). The total 6-month steel output dropped by 2.9% to 35.254 million tonnes. The U.S. reduced steel production by 18.3%, Japan by 17.4%, South Korea by 9.5%, India by 24.2%, while China ramped up production by 1.4%.
The EU steel industry is currently in a "state of emergency" as the coronavirus pandemic added to the market decline, according to the European Iron and Steel Association (Eurofer). In June, steel consumption fell by about half against March as automakers suspended production. Steelmaking facilities with a combined capacity of 18.9 million tonnes per year stood idle during the market collapse caused by the pandemic, more than in any other region.
In July, aluminium prices climbed by 4.6% against June to $1,637.2 per tonne on the London Metal Exchange in July. As of August 14, the metal price reached $1,730 per tonne. The uptick of non-ferrous metal prices in early August was triggered by a new money injection from the Central Bank of China into the country's financial system. However, aluminum may soon look downward again given the abundance of production capacities in China.
More details on the trends and performance results of the ferrous and non-ferrous metallurgy market in May-June 2020 are provided in issue 1386 of AK&M Information Agency's "RUSSIAN INDUSTRIES: PRODUCTION, FINANCE, SECURITIES. Ferrous and Non-ferrous Metallurgy" monthly paper.
