As China continues to reduce steel production, global steel production in November fell by 10% year-on-year to 143.3 million tons.
In November, Chinese steelmakers produced 69.31 million tons of crude steel, which is 3.2% lower than the October performance and 22% lower than the November 2020 performance. Due to the limitation of the heating season and the government's preparations for the Winter Olympics, the decline in production is in line with market expectations. However, the average utilization rate of Chinese steel mills did not drop last month.
According to market sources, the profit margins of Chinese steel mills have improved last month, so companies are unwilling to continue to actively reduce production. In addition, production in December is expected to increase. Even if there is a substantial increase, the country's annual steel output will be lower than last year's production of 1.065 billion tons.
Production in the Middle East has also declined, mainly due to a 5.2% decline in Iran's production, which is partly related to electricity problems in the summer.
At the same time, according to the World Steel Association (Worldsteel), steel production in other regions continued to increase, driven by steel demand and price recovery after the COVID-19 crisis.
Post time: Dec-27-2021