DTC Coal “Intra-Monthly” Flash
June Global Steel Production Analysis
DTC provides a rapid analysis and turnaround service of Intra-Monthly Data Releases (Coal Exports/Imports, Steel Production, Generation, Utility Inventories) helping you to understand the trends by region through monthly high's and low's.
DTC Short & Sweet: Global crude steel output in June was 135.59 mm MT, up 0.7% seq on a per diem (pd) basis but down 2.4% YoY, while total pig iron (coking coal intensive) production of 97.48 mm MT fell 0.4% seq pd and 1.7% YoY. Crude steel output declines in Rest of World (down 4.0% YoY) were steeper than China (down 0.8% YoY), in what could be a result of the uptick in Chinese steel exports this year. Halfway through the year, crude steel production of 813.05 mm MT is down 2.0% YoY. For the second consecutive month South America (+0.8%) and the European Union (+1.7) were the only two regions to see YoY gains, while North America (-6.4%) and the CIS (-10.7%) again saw significant declines. Pig iron output in China increased 0.1% seq pd but fell 2.1% YoY, a bigger YoY decline than RoW pig iron output which was down 1.2% seq pd and 1.0% YoY. The global crude steel capacity utilization rate rose slightly to 72.2% in June (up from 72.1% in May but down from 75.7% a year ago).
- Pig Iron vs Crude Steel: Global pig iron production in June decreased 0.4% seq pd and 1.7% YoY to 97.48 mm MT. The seq pd decline pig iron was led by Europe (-2.1%), CIS (-3.5%), and Other Europe (-8.3%).
- Global Crude Steel YoY Change: Down 2.4% YoY, the sixth straight month of negative YoY growth (down 0.7% in Jan, down 1.6% in Feb, down 2.7% in Mar, 1.7% in Apr, and 2.1% in May), and steepest YoY decline since April 2015.
- Total Excl. China: 66.65 mm MT – down 0.5% seq pd and 4.0% YoY. YTD production of 403.07 mm MT is down 2.8% YoY and annualizes to 812.83 mm MT, compared to 2014 total of 814.26 mm MT. Total excl. China posted the worst YoY decline since April 2015.
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