In 2022, global steel production decreased by 4.3%

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AK&M 27 February 2023 13:25

In 2022, global steel production decreased by 4.3% compared to a year earlier to 1,831.5 million tons — to the level of crisis for the industry in 2020. Moreover, China accounted for 55% of the total volume — the share of this country in global smelting remains consistently high.

This is stated in issue No. 1511 of the monthly bulletin "Branches of the Russian economy: production, finance, securities. Ferrous and Non-ferrous Metallurgy" of the AK&M News Agency.

It is also worth noting that 54 countries that are not among the top ten steel producers occupy only 14% of the world's smelting. According to the WSA, in December 2022, global steel production fell by 10.8% compared to December 2021 to 140.7 million tons of steel, but this result was 1.2% higher than November 2022.

In 2022, Russia reduced steel production by 7.2% to 71.5 million tons compared to a year earlier, retaining fifth place among metal–producing countries (according to WSA). In the USA during this period, metal production decreased by 5.9% to 80.7 million tons. China reduced smelting by 2.1% to 1,013 million tons, Japan — by 7.4% to 89.2 million tons, South Korea — by 6.5% to 65.9 million tons. At the same time, India increased steel production by 5.5%, and Iran — by 8%. In December, 5.5 million tons of steel were smelted in Russia — 11.3% less than a year earlier.

On February 1, the European Commission presented its Green Deal Industrial Plan, which aims to increase the competitiveness of European industry with zero emissions and support a rapid transition to climate neutrality. The plan provides for the creation of more favorable conditions for the expansion of the EU's production capacity for the production of zero technologies and products necessary to achieve Europe's ambitious climate goals.

Since the beginning of 2023, world prices for most types of rolled products have begun to rise, provoked by positive expectations in the Chinese economy. This is also due to the sharp rise in the price of iron ore in December. Thus, the average price of slabs increased by 15.1% to $616.9 per ton, steel billet — by 2.7% to $633.8 per ton on January 20. Flat rolled products also became more expensive in January: prices for hot—rolled rolled steel increased by 8.4%, for cold-rolled steel - by 7.5%. The price of iron ore with a Fe content of 62% on the Dalian Commodity Exchange on February 17 was at the level of 885 yuan ($128.75) per ton — 37.2% higher than a year earlier. According to Goldman Sachs, traders should prepare for a 20% increase in iron ore prices in the second quarter, as there is a "significant" shortage in the market, which will raise prices to the projected $150 per ton.

This is stated in issue No. 1506 of the monthly bulletin "Branches of the Russian economy: production, finance, securities. Ferrous and Non-ferrous Metallurgy" of the AK&M News Agency dated February 22, 2023.