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Global Steel Production and Capacity Utilization in May 2014

June 19, 2014

Global steel mill production in May on a tons per day basis was 4.554 million tonnes. The last three months have all been greater than 4.5 million for the first time ever which drove the three month moving average (3MMA) of production in May to another all-time high annual rate of 1.677 billion tonnes and a capacity utilization of 78.9 percent, (Figure 1).

Capacity is now 2.076 billion tonnes. Table 1 shows regional production in the single month of May with regional share of the global total, also three months production through May and YTD production.

In three months through May year over year (y/y) growth was 2.2 percent. All regions except the CIS, other Europe and South America had positive y/y growth in three months through May which was a repeat of the three months through April. The European Union continuing to lead the way with a 4.6 percent year over year growth rate. Growth of output in the NAFTA was 1.5 percent year to date. The growth of China’s steel output YTD through May was 2.3 percent down from 12.4 percent in March last year. It is still too soon to tell if the growth of China’s production really is being reigned in but the signs are encouraging. North America and China produced 7.2 percent and 49.9 percent of the global total in May respectively. Figure 2 shows the y/y growth of global production which has been slowing in 2014. (Source World Steel Association)