What is the global steel production in 2022?
Analytical study of metals in global markets and answers to three important questions in this section
Three general analyzes with the approach of examining some metals from the global market that may influence your decisions for scrap metals trading. These analyzes are based on current events in the metal market and have been performed by experts in this field.
We know that decision-making has become very complicated in recent days due to severe market fluctuations. Therefore, decision making for transactions is considered as one of the most important approaches of Gain Company. The company hopes to provide the best analysis to guide small and large metal traders in the best way and provide them with the best analysis.
The performance of the first quarter of 2022 indicates a decrease in global steel production. In March this year, compared to the same period last year, crude steel production worldwide fell by about 5.8 percent to about one hundred and sixty-one million tons.
On a quarterly scale, production fell by 6.8 percent, and the total steel produced worldwide during this period was about four hundred and fifty-seven million tons.
But what is the reason for the decrease in production in March? The most important reason for this is the decline in production in China. This is because the country reduced its steel production by about 6.4%. Also, in the first three months of 2022, it produced ten and a half percent less than the same period in 2021.
The United States produced 1.7 million tons of steel in March, down 1.7 percent from a year earlier. Of course, its quarterly decline is 0.4 percent.
North America fell 9.7 percent in March, as well as in the first quarter of this year, 9.7 percent and 0.9 percent, respectively.
Steel production in India and Brazil in March was not only lower than the previous year, but also 4.4 and 5.4 percent, respectively. India produced 10.9 million tons of steel and Brazil 3 million tons.
All in all, this quarter was a tough time for the steel industry around the world. The conflict between Russia and Ukraine and the resulting problems are one of the reasons for this difficulty. On the other hand, the resurgence of the Corona virus in China, which is the largest country in the field of steel production, played a very important role in the decline in production.
What will the global scrap market look like in the midst of the Russia-Ukraine war?
In the midst of the Russia-Ukraine war, many markets, including steel and iron ore, were affected. Reports indicate that the scrap market is no exception and tensions in this market have become more pronounced. This upward trend in prices has intensified since the West imposed sanctions on Russia.
At the start of the war between Russia and Ukraine, the price of scrap rose by $ 15.5 to about $ 255 per ton. The average price was $ 504.15 in February, up $ 34.78 from January.
The important thing is that the price growth rate will probably not decrease. In Turkey, the price of this product even reached more than five hundred and fifty dollars. The same trend can be seen in the London Metal Exchange. The price for delivery next month is over five hundred and seventy dollars. It will also reach $ 500 for the next two months.
Rising global steel prices and the possibility of increased demand in the future, on the one hand, and the war and tension between Russia and Ukraine, on the other, have led to difficult market conditions.
Analysts believe that the price of scrap will increase to six hundred dollars in the coming months, and consequently, steel will also become more expensive. Iron ore, which has crossed the $ 150 mark, is likely to reach $ 200 by mid-2022.
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Three reasons for the increase in global aluminum prices
The global price of aluminum is on the rise. So that it has reached the highest level in the last thirteen months and the price per ton is three thousand two hundred and twenty-one dollars. But the cause must be attributed to three important factors:
The first factor is the recent tensions in Russia. The country has entered into serious tensions with Ukraine, and since the volume of aluminum exports in this country is high and is known as one of the most important aluminum exporting countries in the world, any kind of political tensions can bring this issue under. Put the radius.
The second factor is related to the increase in energy and oil prices, because energy has a 25% share in the production of aluminum ingots.
The next factor in the increase in the global price of aluminum is the developments that are taking place in the London Metal Exchange. In fact, the stock of warehouses in this important and large market of metals has been greatly reduced, so that it is at the lowest level of the last fifteen years, and this has led to a shortage of supply and thus an increase in prices.
It should be noted that the problems caused by the lack of electricity have caused a difference in the price of forty dollars per ton for quarterly transactions compared to cash transactions, which is unprecedented in the last four years. This shows that the price increase continues.
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