Global steel production stable on year in Oct: worldsteel

Banner Image

Global crude steel production totaled 147.3 million mt in October, stable year on year, but down 2.9% from September to an eight-month low, according to World Steel Association data published Nov. 22.

This brought total production for the first 10 months of 2022 to 1.55 billion mt, down 3.9% on the year.

China produced 79.8 million mt in October, up 11% from a year ago, but down 8.3% from September and also at an eight-month low, making up 54.1% of total global crude steel output.

This brought January-October steel production in China to 860.6 million mt, down 2.2% year on year.

The world's second-largest steel producer India also saw production grow 2.7% year on year in October to 10.45 million mt, which was also up 5.8% month on month, the data showed.

India's cumulative January-October output also rose 6.1% to 103.8 million mt, according to worldsteel.

Japan's October production was 7.35 million mt, down 11% on the year, but up 2.9% from September, with January-October output down 6.5% on the year to 75.2 million mt.

US output in October was 6.7 million mt, down 8.9% year on year but up 2.7% on the month, taking January-October production to 68.1 million mt, down 4.8% year on year.

Russia was estimated to have produced 5.8 million mt in October, falling 11.5% from October 2021, but up 3.3% month on month, bringing its estimated January-October output to 60.4 million mt, down 6.6% on the year, likely impacted by the Russia-Ukraine war and western sanctions.

South Korea produced 5.1 million mt of crude steel in October, down 12% year on year, but up 10% month on month, with the 10-month volume down 5% on the year to 55.7 million mt.

Europe January-October output down 9.3%

For Europe, including the UK and Turkey, crude steel production fell 17% on the year in October to 15.03 million mt, although this was 5.5% higher on the month and at a four-month high, the data showed.

Europe's January-October volume was 155.5 million mt, dropping 9.3% on the year.

Germany, the largest steel producer in Europe, saw its crude steel production fall 14% on the year in October to 3.1 million mt, although this was up 11% on the month and also at a four-month high.

High energy costs have hit steel production, as well as demand, with the auto sector also still facing the ongoing semiconductor chip shortage.

In January-October, Germany produced 31.4 million of crude steel, down 6.9% year on year, the data showed.

Domestic prices for hot-rolled coil in Europe have been weakening since the second half of March on low demand, with Platts assessing domestic HRC prices in Northern Europe at Eur615/mt ex-works Ruhr Nov. 21, down 33% since the start of 2022, according to S&P Global Commodity Insights.

Turkey October production down 18% on the year

Turkey saw the largest year on year fall in October, down 18% year on year to 2.9 million mt, according to the data, although this was up 7% from September's volume. Ten-month production was down 10% on the year to 30.2 million mt.

Brazil produced an estimated 2.8 million mt in October, down 4.5% year on year, but up 3.3% from September, while Iran's monthly output was 2.9 million mt, up 3.5% on the year and 4.7% higher than the previous month.

Brazil's January-October estimated production fell 5.2% on the year to 28.7 million mt, while Iran's output for the 10-month period rose 9% to 25.1 million mt.

October production of pig iron from 38 countries was 104.5 million mt, up 3.1% year on year, the data showed, while direct reduced iron produced worldwide amounted to 9.3 million mt, up 8.4% year on year, the data showed.

Pig iron output over the January-October period totaled 1.1 billion mt, down 2.2% year on year, while DRI production for the period rose 7.6% on the year to 91.9 million mt.

Crude steel data covers the 64 countries that report to worldsteel, accounting for about 98% of the world's crude steel production.

Tags

  • Metals & Mining

Related content

News

South Korea's L&F to supply $9.95 bil of cathode materials to SK On over 6 years

South Korea's L&F Co signed a $9.95 billion deal to supply high-nickel cathode material to battery maker SK On over the next six years, the cathode materials company said March 25. The value of the supply contract was estimated by L&F and is effective March 22, 2024 to Dec. 21, 2030, as it builds up its supply of battery-related materials. High-nickel cathodes are necessary to extend the lifespan and capacity of secondary batteries. To boost its local production capacities, South Korea's Fair Trade Commission approved a plan by L&F to set up a joint-venture 120,000 mt/year battery precursor plant at Samangeum Industriale Complex, Gunsan, as early as 2025 to 2026, together with LS Corp. Also, the supply of the cathode material will be vital to SK On, which plans to start up its third electric vehicle battery plant at Seosan in 2025 with a production capacity of 14 GWh. In a related development, SK On will supply its high-nickel batteries to Swedish EV maker Polestar from 2025. Platts assessed spot battery-grade nickel sulfate with minimum 22% nickel content and maximum 100 ppb magnetic material at Yuan 30,500/mt ($4,238/mt) DDP China March 22, up Yuan 500/mt from the previous session, S&P Global Commodity Insights data showed. Platts Connect: News & Insights (spglobal.com)

News

Australia’s Pilbara, China’s Ganfeng to study setup of JV lithium plant

To consider conversion plant with 32,000 mt/year LCE output Uncertainty risks remain in China’s lithium markets Australian miner Pilbara Minerals said March 25 it signed a binding term sheet to complete a joint feasibility study on a downstream lithium conversion plant with China's Ganfeng Lithium Group, one of the world's largest lithium chemical converters. Global lithium salts prices have dived significantly in the recent past due to supply surplus amid expanding capacity and weakening demand. The feasibility study will consider a conversion plant that could produce 32,000 mt/year lithium carbonate equivalent of lithium chemicals (hydroxide and/or carbonate), along with a potential intermediate lithium chemical product in Australia, leveraging Ganfeng’s experience as a lithium chemical converter, Pilbara said in the statement. The feasibility study is expected to be completed in the March quarter of 2025, with an option to progress to a final investment decision and formation of a joint venture following that. This was not the first attempt for Pilbara Minerals to move into lithium chemicals conversion business. The company has made an FID in August 2023 for a demonstration plant within the Pilgangoora Operation JV in Western Australia with environmental technology developer Calix. Calix said the project was estimated to produce more than 3,000 mt/year of lithium phosphate at full capacity, using spodumene concentrate feed purchased by the JV from Pilbara on commercial terms consistent with market pricing. The plant was expected to produce first lithium salt in the June quarter of 2025 and ramp up to steady state production in the March quarter of 2026, Calix said. Cooperation with Ganfeng Lithium This was the first time Pilbara and Ganfeng Lithium are working together on a downstream lithium conversion plant. It could help Ganfeng Lithium lessen the impact from the US Inflation Reduction Act to establish the plant outside China. However, when and where the project would be situated remained unknown, industry sources said. Ganfeng Lithium held a 5.76% stake in Pilbara as of the first half of 2023, according to an interim report. Pilbara previously bumped up its supply of spodumene concentrate to China’s Ganfeng Lithium Group in January. According to an amendment made to an offtake agreement, Pilbara will supply spodumene to Ganfeng Lithium in the range of 260,000-310,000 mt/year over 2024-2026. Lithium carbonate prices Lithium carbonate prices in China plunged 85% from their peak seen in 2022 to a low of Yuan 90,000/mt ($12,487) in early January. The prices have moved up since then to Yuan 112,350/mt as of March 22, according to S&P Global Commodity Insights data. However, prices would continue to face pressure as downstream consumers have almost finished restocking while imports have stayed elevated and a small number of lithium salt producers in Jiangxi province planned to resume production, sources said. Market participants are keeping a close eye on the recovery of downstream demand in the upcoming peak season. The most active lithium carbonate contracts for July 2024 delivery on the Guangzhou Futures Exchange closed at Yuan 107,400/mt March 25, down 6.6% or Yuan 7,600/mt from the previous settled price, GFE data showed. The price direction highlighted the uncertainty risks in China’s lithium markets, sources said. Platts Connect: News & Insights (spglobal.com)

News

EU, Norway sign MOU on raw materials, battery value chains

MOU to develop into long-term cooperation in five areas First business match-making event to take place in April The EU and Norway signed a memorandum of understanding launching a strategic partnership to develop sustainable land-based raw materials and battery value chains, the European Commission said March 21. The MOU -- a building bloc of the EU-Norway Green Alliance announced in April 2023 -- is meant to lead to long-term cooperation between the EU and Norway in five areas: integration of raw material and battery value chains through joint projects and ventures; research and innovation; information exchange around environmental, social and governance (ESG) standards and practices; mobilization of financial instruments, notably through Invest EU, the European Raw Materials Alliance and the European Battery Alliance; and developing skills for high-quality jobs in the sectors. The EU and Norway will now work on implementing the roadmap for the partnership with the first business match-making event planned during the Hannover Messe trade fair on April 22. The MOU rests on the strength of Norway as a country rich in rare earths, magnesium, titanium, vanadium, phosphate rock and other resources, and with a large processing capacity for a few of these minerals, to which the EU adds value as an established and growing market for green technologies, including batteries with an estimated demand in 2023 of 175 GWh. The EU battery industry is the second largest in the world with existing facilities having up to 220 GWh of ramp-up capacity and an additional 1 TWh of battery manufacturing projects that have been announced or are currently under construction, according to the commission. With critical raw materials needed to deliver on green energy objectives, the commission has started to build a series of partnerships on raw materials with Canada and Ukraine in 2021, Kazakhstan and Namibia in 2022, Argentina, Chile, Zambia, the Democratic Republic of Congo and Greenland in 2023, and Rwanda in 2024. The partnerships are in line with the Global Gateway strategy, through which the EU will mobilize up to Eur300 billion ($325 billion), it says. Platts Connect: News & Insights (spglobal.com)

News

CERAWEEK: Energy industry has trapped itself with binary technology talk

Industry must be open to new technologies Wind, solar attack natural gas’ market share The energy industry has trapped itself with binary dialogue about being for one type of technology or another, when all resources need to work together to achieve energy transition goals, Tinker Energy Associates CEO Scott Tinker said March 22. The energy transition is not just about one technology, but rather a suite of technologies, panelists said at the CERAWeek by S&P Global energy conference in Houston. “What is nice about renewables and new technology is they're much more democratically distributed around the world,” said Andres Gluski, AES Corporation president and CEO. “The reality is a little bit more complicated. But I also think it's not rocket science.” However, the industry has to be careful about status quo because things are changing rapidly, Gluski added. “In the power industry, we're seeing once in a 100-year events, like floods and heatwaves, etc., occur every year.,” Gluski said. “The weather has changed. That’s the reality.” Industry leaders need to look at how to deliver the electricity with the lowest carbon and in most sustainable way possible, he added. Renewables versus fossil fuels Solar and wind costs have dropped remarkably over the years, Tinker said. “To make it reliable requires something sitting here waiting to back it up … and that something is expensive,” Tinker said about battery storage. “I think we have to be more open and candid about the actual cost of electricity to be integrated.” The domestic production of wind turbines is strong, with battery storage production to come, while domestic of solar panels will take longer, Gluski said. And while renewables do not generate 24 hours a day, coal is not going to come back regardless of political slogans, he added. “For a lot of these new technologies we need the regulators to be on top of it as a lot more is coming," Gluski said. The energy transition has to happen at a pace that’s politically sustainable, said David Victor, a professor of Innovation and Public Policy with the School of Global Policy and Strategy at University of California, San Diego. “I'm really concerned that we are overweighting the familiar,” Victor said. “We are overinvesting in things we know how to do and probably underinvesting in things that we don't yet know how to do.” Glue that holds it together “We got to figure out the glue that holds all this together,” said Hunter Hunt, chairman and CEO of Hunt Energy. There will be less natural gas needed than the industry thinks, but more than environmentalists think, he added. “Wind and solar are absolutely attacking natural gas’ share and they've decimated coal in the industrialized world,” Hunt said. “If natural gas is going to be a transition fuel, the industry needs to do its part to make sure that we're doing it in the right way. The future of energy can be seen in Texas today, Hunt said about the battery storage growth happening. There such a diversity in approaches with new technology and “we need all of it,” said Evelyn Wang, director of the Advanced Research Projects Agency-Energy with the United States Department of Energy. Houston, we have an opportunity “One of the things that is different today versus this time last year, is just explosion of activity in energy transition-related projects in Houston and Gulf Coast,” said Bobby Tudor, CEO Artemis Energy Partners and chairman of the Houston Energy Transition Initiative. “We have enormous competitive advantages here in this region to be a leader, and it's up to us to intentionally do that. … We intend to continue to exploit that advantage.” Texas has the largest concentration of technical talent in the world related to energy systems, Tudor said, adding the state is well positioned for the task due to its ports and access to wind and solar resources. A lot of the development in Texas has to do with permitting and the ability to get projects permitted and done, Tudor said, adding that process is much more difficult in rest of the country. The catch phrase should be “Houston, we have an opportunity” instead of “Houston, we have a problem,” said Atul Arya, S&P Global Commodity Insights senior vice president and chief energy strategist.