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While April global steel production rose 0.5% to a new all-time high of 4.279 million tonnes per day (mtpd), a 1.6% rise in Chinese production masked a 0.6% decline in the rest of the world. The 50% increase in Chinese production since before the start of the recession, coupled with a 28% increase in Chinese net exports year-to-date is a stark reminder of the reemergence of China’s runaway steelmaking freight train.

Despite the fact that most Chinese steelmakers are bleeding red ink, so far in May, Chinese production continues at a record pace, running at 2.045 mtpd or an annualized 749 mt, some 9.6% above the prior peak.

Looking at the US, we’re seeing production still down 9% from the pre-recession peak, despite the fact that imports are actually up 32% year-to-date.

Our full report is available to subscribers only and provides further thoughts on global steel production and pricing and the implications for steel equities.

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