Global crude steel production climbs 3.6% on year in 2021: worldsteel

Global crude steel production rose 3.6% year on year to 1.9 billion mt in 2021, with a decline in China being offset by increases across the board among other big producers, according to World Steel Association data published late Jan. 25.

China produced 1 billion mt of crude steel during the year, down 3% year on year, making up 54% of the overall total.

The world's second-largest steel producer India increased output by 17.8% in 2021 to 118.1 million mt, while production from Japan climbed 14.9% to 96.3 million mt for the year.

Output from the US also rose, gaining 18.3% year on year to 86 million mt in 2021, and an estimated 76 million mt was produced in Russia, up 6.1% from 2020.

South Korea's production for the year climbed 5.2% to 70.6 million mt and output from Turkey jumped 12.7% to 40.4 million mt.

European production up on-year

Crude steel production in the whole of Europe including the UK climbed 14.1% year on year to 203.7 million mt in 2021, with Germany, the largest European steel producer, producing 40.1 million mt, up 12.3%.

The European steel sector has been facing steep climbs in electricity prices together with a surplus of steel in the latter half of 2021, with demand from automakers falling due to production being hit by the ongoing semiconductor chip shortage.

The daily S&P Global Platts TSI index for HRC Northern Europe assessed at Eur920/mt ($1,038.30/mt) ex-works Ruhr on Jan. 25, up from Eur718/mt a year ago.

"Right now, reducing output is a much more favorable option than lowering prices," an Italian distributor told S&P Global Platts.

Market participants expect price hikes to continue in Q1 2022 based on raw material expenses and an upsurge in production costs.

"Production costs have gone up around 100% since last year," an Italian mill source said. "In order to achieve our profit margin there is no room for a price drop."

Meanwhile, Brazil's crude steel output for the year rose 14.7% year on year to 36 million mt, according to the worldsteel data, while Iran produced an estimated 28.5 million mt in 2021, down 1.8% from the previous year.

The data released covers the 64 countries that report to worldsteel, accounting for around 98% of the world's crude steel production.