Global crude steel production totaled 162.7 MMT in April, according to the latest data from the World Steel Association. While down 5.1% YoY, this was the highest level of monthly output since June 2021, increasing by 1.22% MoM. This was primarily driven by a recovery in Chinese output, which totaled 9.3 MMT in April. While still down 5.2% YoY, output climbed by 5.1% MoM.

The easing of Covid-19 restrictions in Shanghai and Beijing and fresh stimulus measures should support steel demand in the coming months. A package of 33 stimulus measures were announced by China’s cabinet on Tuesday, including support for the car industry, reduced borrowing costs, increased infrastructure spending, and tax rebates. Reflecting this, prices for the most-traded coking coal and iron ore contracts on the Dalian Exchange increased on Monday by 3.9% and 2.8% respectively.

Excluding China, steel output declined in April, owing to slowing global economic activity and inflationary pressures. In India, crude steel production totaled 10.1 MMT, increasing by 6.2% YoY. However, Indian mills were not able to maintain the strong production levels seen in March, with output down 8.8% MoM. India has been experiencing a power shortage amid a record-breaking heatwave and higher input costs have led to authorities raising iron ore export duties and trimming coking coal import tariffs.

EU output decreased by 5.3% YoY and 1.6% MoM, totaling 12.3 MMT. The bloc’s automobile sector, a large source of steel demand in Europe, is facing chip shortages creating backlogs and limiting fresh steel demand. Japan produced 7.4 MMT of steel, falling by 4.6% YoY. USA output totaled 9.4 MMT, down 3.9% YoY and 0.2% MoM.