China's cuts will affect global steel production again

The decline in steel production in China continued in August, while producers there produced steel by 13.2 percent in August compared to August 2020. This month-over-month decline follows a similar pattern in July, when production in China fell 8.4 percent from the same period last year. a year earlier, according to data compiled by the Brussels-based World Steel Association (Worldsteel)

Perhaps more revealing about the near future of Chinese steel production - which will be significantly impacted by the potential cuts in multi-story housing construction - is that monthly production fell from one month to the next this summer: 93.9 million metric tons produced this summer. June 86.8 million in July and 83.2 million in August.

While production in China fell in August, most of the other major steel-producing countries have not lagged behind to serve economies continuing to recover from the more severe impact of COVID-19 in 2020.

Manufacturing in the United States was up 26.8 percent from August 2020. In Turkey, a leading exporting country for ferrous scrap, production increased 7.1 percent year-on-year in August, while production in India rose 8.2 percent.

Production cuts in China contributed to a 7.2 percent contraction in Worldsteel Asia and Oceania in August this year compared to August 2020. In North America, meanwhile, production rose 24.4 percent and in the European Union 27.1 percent from last August.