Worldsteel published July’s world crude steel production on August 27th. World steel output was 154.6 million metric tonnes, 5.8% higher than in July 2017. Crude steel production in the first seven months of 2018 was 5.1% higher than in the same period last year.
China accounted for 53% of world output in July with production of 81.2 million tonnes, 7.2% higher than in July 2017. Asian output outside of China grew 3.7% following increases in India (+8.0%), Vietnam (+36.1%) and Taiwan (+12.2%). European Union production rose 3.9% due to increases in Germany (+10.9%), Spain (+20.1%) and the United Kingdom (+26.9%). In the NAFTA region, US production rose 4.5%, Mexican output was up 3.0%, but Canadian production fell 9.3%. Other notable changes compared to last July include increases in Ukraine (+11.4%), Brazil (+6.7%), Iran (+13.2%), and Saudi Arabia (+39.5%).
Photo by Pablo Malamud (Absalon27) [Public domain], via Wikimedia Commons
Based on reported import licenses, US long steel products imports are expected to rise 84% from 190,000 short tons in June to 350,000 tons in July. This is following a 223% rise in rebar import licenses in July, due mainly to higher licenses from Italy and Spain. In addition, parallel flange sections licenses rose 270% due to higher license volumes from the United Arab Emirates, South Korea, and Luxembourg.
Based on January-to-June imports and July import licenses, long products imports in the first seven months of 2018 were 28% lower than in the same period last year, led by a 35% drop in wire rod imports and a 27% fall in rebar imports.
SIMA US long products import licenses
2012 to 2018
short tons
Photo by W.carter [CC BY-SA 4.0 (https://creativecommons.org/licenses/by-sa/4.0)], from Wikimedia Commons
Based on reported import licenses, US flat steel products imports increased 16% from 743,000 short tons in June to 859,000 tons in July. The largest volume increase came from hot rolled imports, with volumes increasing from Canada, Japan, and the Netherlands. Cold rolled and cut plate imports also increased, but hot dip galvanized imports fell, primarily due to lower imports from Vietnam.
Flat products imports for the first seven months of 2018 were 5% lower than in the same period last year with declines in cold rolled (-22%), hot dip galvanized (-12%), and cut plate (-21%) imports offsetting an increase in hot rolled imports (+19%).
SIMA US flat products import licenses
January 2013 to July 2018
short tons
Cold rolled coils packaged in storage
Photo from Worldsteel Association Image Library by worldsteel / Seong Joon Cho, Image Ref: worldsteel_posco_south-korea_final-product_8.jpg
Steel companies recently reporting Q2 earnings all showed improved EBITDA per ton, continuing the industry trend. As can be seen in the chart below, 7 of 10 companies reported EBITDA per ton above $100 in Q2, up from 4 of 10 companies in Q1. Two companies (Ternium and Steel Dynamics) generated over $200 per ton of EBITDA in the quarter.
Mills are starting to release Q2 2018 earnings and the results are coming in strong. All mills saw an increase in EBITDA in Q2 per ton relative to Q1. CMC saw EBITDA per ton rise to $89 from $63 in the previous quarter. Nucor went from $116 to $173, SSAB from $109 to $144, Steel Dynamics from $158 to $213, and TimkenSteel from $50 to $83.
Quarterly EBIDTA is published on Nerds of Steel and is also uploaded to the First River Steel Data Room where you can see the underlying data, create custom charts, and download the data in a variety of formats. Go here to start a free trial.
Worldsteel reported Chinese crude steel production at 80.2 million metric tonnes in June, 7.5% higher than in June 2017. Chinese output over the first six months of 2018 was 6.3% higher than in the same period last year.
Chinese net finished steel exports (exports minus imports) in June were 5.9 million tonnes, 3.9% higher than in June 2017. Net exports in the first six months of 2018 were 15.8% lower than in the first six months of 2017.
China monthly crude steel production
January 2006 to June 2018, thousand metric tonnes
Beijing Capital International Airport photo by 颐园新居 (作者作品) [CC BY-SA 3.0 (https://creativecommons.org/licenses/by-sa/3.0) or GFDL (http://www.gnu.org/copyleft/fdl.html)], via Wikimedia Commons
