Global Steel Output Drops in July as China Sees Sharp Decline

Global crude steel production saw a notable decline in July, falling by 4.7% year-on-year to 153 million tonnes, according to data released by the World Steel Association (Worldsteel). The overall decrease was primarily driven by a significant reduction in output across Asia, with China, the world's largest steel producer, experiencing a substantial drop.

China's steel production fell by 9% in July, contributing to an over 2% decline in its output for the first seven months of 2024. The drop in Chinese production is largely attributed to weak domestic demand, which has hampered the industry throughout the year.

In contrast, India's steel production continued to grow, buoyed by strong domestic demand, especially from the automotive sector. Indian steel output rose by 7.2% from January to July, with a notable 12% increase in July alone, despite a surge in steel imports reaching a five-month high.

Europe also saw a modest increase in steel production in July, with Germany leading the way. Other European nations recorded slight upticks in output, supported by new production capacity coming online in Turkey.

Meanwhile, the Middle East's steel production fell in July but remained higher overall for the January-July period compared to the previous year. This regional performance was influenced by a sharp drop in Iranian output due to extreme temperatures and frequent power outages.