Economy

Global Steel Production Reached New Heights Last Year
Written by David Schollaert
January 26, 2022
Global steel production expanded last year as steelmakers around the world produced an estimated 1.905 billion metric tons, according to 2021 data from the World Steel Association (worldsteel). The total was 3.9% or 71.4 million tons above 2020’s COVID-stricken year.
Last year’s total also outperformed the pre-pandemic sum from 2019 by 3.5% or 63.6 million metric tons. In fact, 2021’s estimated 1.905 billion metric tons of steel production worldwide is the highest mark to date, per worldsteel data, driven by repeated record-breaking months of crude steel output in Q2, when China reached an all-time high of 99.5 million metric tons in May.
The grand total for 2021 might have been even higher were it not for a sharp downturn in steel production from June through November driven by Chinese cutbacks. The reductions were attributed to power shortages and the government’s efforts to curb harmful air emissions from the Chinese steel industry.
December’s global steel output jumped to an estimated 158.7 million metric tons, said worldsteel. The total was a 10.7% or 15.4-million-metric-ton jump from the prior month, but still 3.0% below the same year-ago total.
Last month’s growth marked just the second month of expansion since last May, but was still 9.0% or 15.7 million tons below May’s historical high of 174.4 million metric tons.
The U.S. remained the fourth-largest crude steel producer in the world in December, accounting for 7.2 million metric tons or 4.5% of the global total. Domestic steel production was unchanged last month compared to November.
China produced more than half of the world’s steel, 54.3% or an estimated 86.2 million metric tons, in December, up 24.4% month on month. When compared with December 2020, Chinese production was down 5.5%, yet 2.3% above pre-pandemic levels from 2019.
Only half of the top 10 global steel-producing countries reported increased output month on month in December. In addition to China’s surge, Korea, India, Iran, and Russia all reported increases versus November’s totals. While the U.S. output was flat last month, Japan, Turkey, Germany and Brazil all saw decreased totals in December, worldsteel reported.
By David Schollaert, David@SteelMarketUpdate.com
David Schollaert
Read more from David SchollaertLatest in Economy
US sets Section 232 tariffs on trucks and buses
Medium- and heavy-duty trucks (MHDV) and buses imported to the US will start being charged Section 232 tariffs beginning Nov. 1.
AMU: Consumer auto delinquencies: Warning sign for consumer health?
The Consumer Federation of America estimates rising total auto debt at a staggering $1.66 trillion, along with increasing repossessions and a sharp increase in delinquencies.
Beige Book: Regional market growth remains mostly flat
Economic growth in some US regions in September was offset by challenges in others, causing the market to appear largely unchanged overall, according to the Federal Reserve’s latest Beige Book report.
ISM September survey captures deepening manufacturing gloom
The Institute for Supply Management’s (ISM) latest monthly report on manufacturing reflects a bleak view of American industry in September.
Key industries concerned over government shutdown’s impact on steel, manufacturing
Trade groups cautioned that a prolonged shutdown could strain US industry.
