Steel production is decelerating globally, with output in October rising by 6.2% year-on-year; its lowest growth rate since June, but higher than 2011’s low of 4.2% in May. Europe’s economic problems have affected demand, and China’s slower growth has seen steel output fall sequentially since August. India’s steel output, too, has been relatively flat during this period.
Slower production has meant that global capacity utilization is down at 76.5% in October compared with 79.1% in September and a high of 82.8% in June. A return in global consumer confidence, which will contribute to growth in end-use sectors such as automobiles and construction, could revive the demand for steel.