Global crude steel production across 70 reporting countries experienced a month-on-month contraction in June, falling by 1.4 percent to 155.7 million metric tons, despite a 1.7 percent increase compared to the same period last year. According to the World Steel Association, the monthly output dropped by 2.2 million metric tons compared to May. However, the cumulative figures show solid year-on-year recovery across several key manufacturing hubs, highlighting a shifting landscape for global steel supply chains and raw material demand.
Regional Production Shifts Across Major Steelmakers
China, the world’s largest steel-producing nation, recorded a minor year-on-year increase of less than 0.5 percent to approximately 500,000 metric tons more than last June. Despite this annual stability, Chinese furnaces cut back production by roughly 700,000 metric tons compared to the previous month. Meanwhile, U.S. steel mills lowered output to 7.2 million metric tons in June down from 7.5 million metric tons in May, though U.S. production remained up 6.3 percent year on year.
India maintained a steady output of 14.1 million metric tons across May and June, achieving a 7.1 percent annual increase while continuing to import substantial volumes of ferrous scrap. Turkey demonstrated notable resilience among electric arc furnace producers utilizing recycled content, holding output stable at 3.3 million metric tons in June. Conversely, Russian steel production continued to contract, dropping by an estimated 8.4 percent year on year during the first half of 2026.
Year-to-Date Growth and Market Dynamics
The first half of 2026 revealed diverging trends across international markets, with European and North American producers posting notable gains. Germany led the major nations with an 8.9 percent increase in year-to-date output, followed closely by Turkey up 8.1 percent, India up 7.1 percent, and the U.S. up 6.3 percent. In contrast, Chinese output declined by 3 percent over the first six months compared to the previous year, reflecting sluggish domestic property construction and cautious industrial purchasing. These regional imbalances continue to dictate global trade flows for primary steel, pig iron, and recycled scrap inputs.
Market Impact
○ Impacted Metals: Crude steel, ferrous scrap, pig iron
○ Direction: Mixed
○ Time Horizon: Q3 2026
○ Affected Industries: Construction, automotive, infrastructure, heavy manufacturing, metal recycling
○ Related Price Reports: Steel Weekly Price Report
○ Watch Item: Monitor Chinese domestic demand recovery and monthly output adjustments to gauge future ferrous scrap consumption trends.
SuperMetalPrice Commentary:
The slight dip in June global crude steel output highlights ongoing fragility in real demand, particularly within China’s property and manufacturing sectors. While Western producers maintain positive year-to-date momentum, uneven capacity utilization will likely keep raw material input prices range-bound in the near term.
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