Worldsteel reported Chinese crude steel production at 82.6 million metric tonnes in October, 9.1% higher than in October 2017. Chinese output over the first ten months of 2018 was 6.4% higher than in the same period last year.
Chinese net finished steel exports (exports minus imports) in October were approximately 4.4 million tonnes, 9.2% higher than in October 2017. Net exports in the first ten months of 2018 were 11.1% lower than in the first ten months of 2017.
China monthly crude steel production
January 2006 to October 2018, thousand metric tonnes
Photo of Chongqing, China by ming chen [CC0], via Wikimedia Commons at https://upload.wikimedia.org/wikipedia/commons/9/9c/Chongqing%2C_China.jpg
Worldsteel published October’s world crude steel production on November 23rd. World steel output was 156.6 million metric tonnes, 5.8% higher than in October 2017. Crude steel production in the first ten months of 2018 was 4.7% higher than in the same period last year.
China accounted for 53% of world output in October with production of 82.6 million tonnes, 9.1% higher than in October 2017. Asian output outside of China grew 3.4% on last October with increases in Vietnam (+123.3%), South Korea (+3.5%), and Taiwan (+9.7%) offset by a decline in Japan (-4.5%). European Union production fell 0.8%, and in North America, production rose 10.5% in the US, 1.1% in Mexico, and fell 14.6% in Canada. Other notable changes year-on-year include a 10.6% increase in Iran and a 4.3% decline in Turkey.
Close up of billets being cast on a 4 stand caster
Photo from Worldsteel Association Image Library by worldsteel/Roger Ball, Image ID:370
Based on reported import licenses, US long steel products imports fell 6% from 226,000 short tons in September to 213,000 tons in October. The decline is mainly the result of lower parallel flange sections imports from Luxembourg and lower rebar imports from Turkey.
Based on January-to-September imports and October licenses, long products imports in the first ten months of 2018 were 27% lower than in the same period last year with the largest volume declines coming from wire rod, down 31%, and rebar, down 21%.
SIMA US long products imports licenses
2012 to 2018
short tons
Photo of rebar on column of the eastern span rebuild of the San Francisco-Oakland Bay Bridge by Leonard G. – Own work, CC0, https://commons.wikimedia.org/w/index.php?curid=15223591
Based on reported import licenses, US flat steel products imports are expected to rise 2% from 837,000 short tons in September to 856,000 tons in October. This is due to higher expected hot dip galvanized imports from countries including the United Arab Emirates and Turkey, as well as higher cut plate imports from South Korea.
Based on January-to-September imports and October import licenses, flat products imports in the first ten months of 2018 were 6% lower than in the same period last year with a rise in hot roll imports (+19%) offsetting a decline in cold roll (-26%), hot dip galvanized (-12%), and cut plate (-22%) imports.
SIMA US flat products imports licenses
January 2013 to October 2018
short tons
Steel coils in storage in the hot-dip coating line, designed by Friedrich Ernst von Garnier, Duisburg, Germany
Photo from Worldsteel Association Image Library by worldsteel / Gregor Schläger, Image ID: 180
US mills have started reporting Q3 2018 earnings and in most cases EBITDA per ton shipped is higher than in Q2. One exception was CMC, whose EBITDA per ton dropped from $89 to $84. The other mills all reported higher EBITDA per ton: AK $119 to $131, Nucor $171 to $196, SSAB $144 to $158, SDI $213 to $222, TimkenSteel $83 to $84. We’ll keep you posted as more mills report.
Worldsteel reported Chinese crude steel production at 80.8 million metric tonnes, 7.5% higher than in September 2017. Chinese output over the first nine months of 2018 was 6.1% higher than in the same period last year.
Chinese net finished steel exports (exports minus imports) in September were approximately 4.9 million tonnes, 24% higher than in September 2017. Net exports in the first nine months of 2018 were about 13% lower than in the first nine months of 2017.
China monthly crude steel production
January 2006 to September 2018, thousand metric tonnes
Maglev train at Pudong International Airport, Shanghai
Photo by user Alex Needham (own photography) on en.wikipedia [Public domain], via Wikimedia Commons
