Global steel demand unchanged
PROOF that low prices are a production problem.
Wednesday 26 November 2014
FIGURES just released by the World Steel Association have again confirmed that low demand is not the reason for low coking coal prices in Queensland.
World crude steel production was at the same level in October as it was 12 months ago, although that also means that there is no longer growth in steel production around the world.
By comparison, in August 2013 monthly steel production was growing by around 8 per cent year on year globally - and in China it grew 17 by per cent.
Broken down into our major trading partners, China’s crude steel production for October 2014 was 67.5 million tonnes (Mt), down just 0.3 of a per cent for the year, whilst Japan produced 9.4Mt of crude steel, which was a fall of 0.5 per cent.
Amongst those countries increasing steel production were South Korea, producing 6.21Mt - up 4.5 per cent - and France, up around 15 per cent to 1.6Mt.
So with demand still high (but not growing) and coal prices falling - the issue remains an over supply one.
Figures released in September by the Queensland mines department confirmed the over supply.
The department’s Monthly Coal Report showed that during the twelve months ending in May this year, total raw coal production was 46 per cent higher than it was in the 12 months to May in 2013.
Saleable coal production was nearly 11 per cent higher.
The oversupply is why mining giant Glencore has shut down its operations for nearly a month over Christmas - forcing around 8000 staff to take leave.