Trends in European steel market
13. 6. 2011
World production of crude steel in March 2011 rose by 7% to 129.3 million tonnes, the highest monthly total ever. The total of the 3 months to date was 371.5 million tonnes, nearly 9% higher than the January to March period in 2010. However, excluding China, the monthly total was only 5.3% higher, although the quarter was up by 9%. All regions showed an increase in crude steel production in both March and the year to date except for Africa.
Crude steel production in the European Union 27 rose by 4% in March to 16.2 million tonnes compared to March 2010, and was 6.9% up in the quarter at 45.6 million tonnes. German steel production was flat in the month, but was 4.2% higher in the three months at 11.4 million tonnes. Italian production, however, increased by 8.6% in March, and by 8% in the quarter to 7 million tonnes. Spanish steel production only showed a slight rise in March, bringing the year to date total up 2.4% to 4.4 million tonnes. French steel production, on the other hand, fell by 3.4% in March, but was 2.6% up in the three months to 3.8 million tonnes. UK steel production also decreased by 3.1% in March, and by 4.6% in the year to date to 2.4 million tonnes. The Netherlands showed the largest rise in monthly steel production, up 30%, with a 16.6% increase in the quarter to 1.8 million tonnes.
According to ACEA, the European vehicle manufacturers association, car registrations in the 28 European countries monitored increased by 12% in March, and by 11% in the first three months of 2010 compared to 2009. In Germany, registrations fell by 26.6% in March, bringing the three month total down 23% to 670 thousand units. Italian registrations, however, jumped by 20% in March, with the quarter total up by 23% to 666 thousand units, only just below the German total. UK registrations showed an increase of 26.6% in the month, with the year to date total up by 27% to 612 thousand units. French registrations were 18% up in the month, bringing the year to date total up 17% to 595 thousand units. In Spain registrations jumped by 63% in March, bringing the quarter total up 44.5% to 286 thousand units.
The five major Asian countries for which monthly crude steel production data are available all showed increased production in both March and the year to date except for Japan. Chinese steel production increased by 9% in March to 59.4 million tonnes, while the three months total rose by 8.7% to 170 million tonnes, just under 46% of the world total in 2011. Japan's production actually fell by 2.7% in March, with first quarter production up 4.4% to 27.7 million tonnes. Indian steel production in March was 8.6% higher, with the three months total up 8.8% to 18.2 million tonnes. Production in South Korea increased by 14% in March, bringing the year to date total up by 21% to 16.4 million tonnes. Taiwanese production was 13% up in the month, bringing the first quarter total to 5.1 million tonnes, an increase of 14.8% on January to March 2010.
While Chinese imports of steel in March rose by 50% to 1.6 million tonnes compared to February, exports of steel doubled to 4.8 million tonnes, the highest monthly total since June 2010. 61% of Chinese exports in March went to other Asian countries with South Korea alone taking nearly 1.3 million tonnes, over one quarter of the total. Exports to India in March were 302 thousand tonnes with Vietnam in third place at 251 thousand tonnes. Exports of steel to the European Union only accounted for 10% of the total in March, some 489 thousand tonnes.
Source: Phil Hunt, ISSB Ltd
