WorldSteel: World production steel decreased

World production steel in February was reduced by 3.4% compared to the same period of the previous year. According to the World Association, the total production of 69 countries amounted to 144.7 million tons.
A significant fall in China, Japan and the USA.
In China, the largest steel manufacturer in the world, the volume of production in February was reduced by 3.3% in the annual calculus to 78.9 million tons, while the country's real estate sector still has a pressure on internal demand for steel.

But although the volume of construction of new housing in January-February decreased by 29.6% in annual calculus, investments in infrastructure (with the exception of utilities) and the supply sector, as well as the volume of production of cars by 5.6% and 13.9% in annual calculus, respectively.

Despite the fall in the production of unrefined steel since the beginning of the year, the prices have not occurred, since the decrease corresponded to the expectations of the market.

The export market from China can also suffer from additional US duties, since Chinese exporters are reported that alternative markets in the Middle East, Africa and South America.

Last month, Japan recorded an even more sharp production drop in annual calculus - by 8.5% to 6.4 million tons. At the same time, the market in the country was faced with problems associated with the decline in exports, the growth of competitive imports and the weakening of the internal economy.

The market is now also encountering the US tariffs, although Japan achieves exemption from them, since its steel sector largely depends on export.

Such measures can significantly affect steel production. The Chairman of the Japanese Tadasi Black Metallurgy Federation Imai warned that US tariff measures can lead to the lowest production of steel in the country over the past 50 years.

In March, the United States has already introduced a 25 percent fee for the import of steel and aluminum and consider the possibility of introducing additional duties for cars in April.

In the United States, a decline was also recorded: steel production decreased by 7.0% to 6.0 million tons.

A sharp decrease in Germany, Iran and Russia
Germany reported a sharp decrease in production volumes - by 13.5% to 2.7 million tons - amid weak demand and economic problems in the country and the European Union.

Iran faced an even more sharp fall: production fell 21.8% to 1.7 million tons. In February, the export markets of semi-finished products in this West Asian country remained lethargic since the end of January due to weak demand and price uncertainty.

Later this month, cold weather and a lack of gas and electricity supplies have even more influenced the steel sector of Iran.

Predictable