Global steel production fell for the second consecutive month from June to July, down -0.9% to 150.1 million metric tons, as the world’s producers adapt to the implementation of 25% U.S. import tariffs on semifinished steel products. The July tonnage represents -1.3% decrease in output from July 2024, and it brings the year-to-date total for global production to 1.09 billion metric tons, or -1.9% less than the January-July total for last year.
Steel production has declined worldwide in each of the past three years due to slow industrial and construction activity. The Russia-Ukraine conflict also slowed output and demand in that part of the world.
Since April, the first full month following the tariffs’ implementation, global steel output has fallen three out of four months: Output in the Asia and Europe has dropped, but it is up in North America, as U.S. buyers reassess their sourcing patterns.
Raw-steel production data is reported by the World Steel Association, whose monthly summary covers the output from 70 countries that represent about 98% of global output. The organization also monitors steel consumption, but it suspended a regular outlook report in April due the uncertainty of the global market.
China is the most important steelmaking nation, typically producing more than 50% of the world's total output. In July raw-steel output fell for the third straight month, down -4.4% from June and -4.0% July 2024, to 79.7 million metric tons. The year-to-date output total of 594.5 million metric tons is a -3.1% drop from last year for the world’s largest steelmaking country.
India’s steel industry remains an outlier, having steadily increased output during recent years. In July, Indian tonnage rose 14.0 million metric tons, up 2.9% from June and 14.0% from July 2024. January-July output for India is 94.9 million metric tons, a rise of 9.8% versus the first seven months of 2024.
Japanese steelmakers produced 6.9 million metric tons during July, 2.9% more than in June but -2.5% less than in July 2024. The country’s YTD production total is now 47.5 million metric tons, a -4.7% decrease compared to January-July 2024.
The emerging trend in global steel production is the steady rise in U.S. output, now at 47.4 million metric tons (52.25 million short tons) for the year – up 1.5% over the 2024 figure, despite the same weak demand from industrial and construction sectors at work in the rest of the world. In July, historically a slow period for steel output, U.S. producers’ output totaled 7.1 million metric tons (7.8 million short tons), which is 2.8% higher than their June output and 4.8% more than their July 2024 total.
Steelmakers in Russia produced an estimated 5.7 million metric tons in July, 1.8% more than in June but -2.4% less than in July 2024. YTD output in Russia is at 40.8 million metric tons, a -4.4% decrease from last year.
South Korean steelmakers raised their July output to 5.3 million metric tons, 5.7% above June but -4.7% below last July. At 35.9 million metric tons through July, their year-to-date total is down -3.1% against 2024.
German raw-steel output remained unchanged from June to July, at 2.7 million metric tons, but that represents a -13.7% decrease from the July 2024 result and puts the country’s seven-month result a 19.8 million metric tons, or -12.1% lower.
The German situation is reflected across the European Union, where July production totaled 10.2 million metric tons, a -7.0% year-over-year decrease, and raises the region’s year-to-date output to 75.6 million metric tons, -3.8% versus January-July 2024.
The monthly report by World Steel Assn. documents carbon steel produced in basic-oxygen or electric arc furnaces and cast into semi-finished forms like billets for bar and rod products; slabs for flat products; or blooms, for beam and pipe products. Specialty and stainless steel volumes are not included.
