Worldsteel published July’s world crude steel production on August 22nd. World crude steel output was 133.7 million metric tonnes, 1.4% higher than in July 2015. World crude steel production in the first seven months of 2016 was 1.1% lower than in the same period last year.
China accounted for 50% of world output in July with production of 66.8 million tonnes, up 2.6% compared to July 2015. Elsewhere in Asia, Indian output increased a significant 8.1%. European Union production fell 4.6% compared to July last year, led by declines in the UK (-27.3%), Germany (-6.1%), Poland (-21.4%), and Spain (-13.0%). In the Americas, Brazilian output fell 6%, as did US output which was down 2.2%, but Mexican production rose 8.8%.
All the data for July 2016 and for a number of prior years can be found in the Nerds spreadsheet below.
Based on reported import licenses, US long products imports rose 10% from 492,000 short tons in June to 542,000 tons in July. Long products imports in July 2015 were 408,000 tons and in July 2014 they were 314,000 tons. Longs imports for the first seven months of 2016 were 4% higher than in the same period last year.
The increase in longs imports between June and July was mainly due to higher rebar imports from Turkey, though rebar imports also increased from Taiwan and Peru. Japanese rebar imports, however, fell significantly.
SIMA US long products import licenses and import actuals
2012 to 2016
short tons
Based on reported import licenses, US flat products imports rose 21% from 898,000 short tons in June to 1,082,000 tons in July. Flat products imports in July 2015 were 1,192,000 tons and in July 2014 they were 1,359,000 tons. Imports of flat products for the first seven months of 2016 were 26% lower than in the same period last year.
The rise in flats imports between June an July was mainly due to higher hot rolled imports, though cold rolled and cut plate imports also rose. Hot rolled imports rose mainly from Japan, Turkey, and Korea while cold rolled imports rose from Vietnam and cut plate imports rose from France.
SIMA US import licenses and actuals, flat products
January 2014 to July 2016
short tons
Gerdau recently released Q2 financial results. The company reported EBITDA per ton of $77, up from $59 in Q1. Gerdau’s $77 of EBITDA per ton was in the middle of the pack and very close to the $80 Q2 average of the companies we track in the Nerds of Steel earning spreadsheet.
AHMSA and Ternium recently released Q2 2016 financial results. Consistent with other mills we follow, both companies reported improved EBITDA per ton in the second quarter as compared to the first quarter. AHMSA’s EBITDA per ton rose from $46 to $51, while Ternium saw an increase to $137 from $113.
In the chart below (and the spreadsheet behind the chart), we have added ArcelorMittal and TimkenSteel EBITDA and operating income for the second quarter of 2016. Both companies reported better performance in the second quarter as compared to Q1, continuing the improving trend we’ve seen among the companies we track. ArcelorMittal’s EBITDA per ton rose to $73, up from $39 in Q1. TimkenSteel achieved $26 of EBITDA per ton in Q2, as compared to a $4 loss in Q1.
