Asia leads global steel production to new record

Asia leads global steel production to new record.

Asia's mills lead the world's crude steel production rate to a new record in February, the World Steel Association said on Monday, as demand from economic recovery gathered pace.
Output in the West edged up but lagged pre-recession levels, World Steel said.
Global crude steel production rose to 117 million tonnes in February, up 1.6% compared with February 2008, just months before the worst economic recession of the last few decades hit the steel industry. "It's a new all time record. Emerging markets are all up meaningfully," said analyst Michelle Applebaum of Steel Market Intelligence in Chicago. But the steel industry is recovering at different speeds. Crude steel output from China, the world's top producer and consumer of the metal, rose 9.7% to 54.3 million tonnes compared with the same month last year. World Steel said production in South Korea, Asia's third largest producer, soared 25.7% to 5.0 million tonnes in February, from the previous year. The United States remained down 17% from pre-recession levels, along with the EU, down 15%, while emerging markets have surged with China up 24% India up 26% and South Korea up 15% from pre-recession peaks, Applebaum added. Japan, the world's second largest producer of steel, saw its production increase by 5.7% to 8.9 million tonnes in February 2011. The earthquake and tsunami that disrupted production at a few plants and reduced electricity availability is likely to have an impact on March's figures.
Steel production in the EU registered a 7.9% increase to 14.4 million tonne while the United States had a 5.6% increase to 6.6 million tonnes, in February 2011. Crude steel output in North Africa and the Middle East was affected by the political tensions which caused some steel mills in the region to halt operations or reduce production. Output in Libya, a minor producer, was down 56.1% in February compared to the same month one year ago. The global steel capacity utilisation ratio was 82.0% in February 2011, the highest level since May 2010 and 2.7% higher than in February last year. Over capacity still remains an issue for the industry, especially in mature western economies, and if steelmakers ramp up production too much too quickly this could hit profitability.