In July 2021, global steel production continued to decline

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AK&M 23 September 2021 13:00

In July 2021, global steel production continued to decline. According to the World Steel Association (WSA), 161.7 million tons of steel were smelted during this period — 3.3% more than in July 2020, and 3.7% less than in June 2021. This is stated in issue No. 1441 of the monthly bulletin " Branches of the Russian economy: production, finance, securities. Ferrous and non-ferrous Metallurgy" of the AK&M News Agency.

In total, in January-July 2021, 1,165 billion tons of steel were smelted in the world — 12.4% more than in the same period of 2020. Moreover, 56% of this volume was accounted for by China. But already in July, China took a course to reduce steel production due to the tightening of the atmospheric air quality control system, as a result of which in August smelting fell to the lowest level in 17 months, continuing the decline in September. 

In January-July 2021, Russia increased steel production by 9.2% to 44.9 million tons compared to a year earlier, retaining the fifth place among steel-producing countries (according to the WSA). During this period, steel production in the United States increased by 18.5% to 49.5 million tons, in China-by 8% to 649.3 million tons. Japan increased smelting by 16.2%, South Korea-by 8.7%, India-by 28.7%, Turkey-by 17.7%, Iran-by 9.9%. Recall that in April-June 2020, there was a maximum decline in steel production due to the coronavirus pandemic, and such a significant increase was achieved, including due to the "low base"effect. 

Aluminum has risen in price to record values over the past 13 years. Thus, the average price of aluminum on the London Metal Exchange (LME) in August increased by 4.4% compared to July to $2607.4 per ton. As of September 17, the metal price reached $2,914 per ton, and on September 13, it jumped to $3,000 per ton. Prices are rising against the background of Russia's introduction of export duties on metals and a reduction in the volume of aluminum production in China. Aluminum quotes were also spurred by the military coup in Guinea, where a large volume of bauxite is mined. According to analysts, record aluminum prices in the United States and Europe will last for several more months. 

The situation with mining in Russia is becoming more complicated due to a noticeable increase in the mineral extraction tax for metallurgists (MET). The Ministry of Finance has prepared a draft law, which prescribes a mechanism for changing tax policy. In particular, it is planned to raise the production tax for metallurgical companies several times. But the exact data on the values by which the MET will be increased has not yet been announced. The bill also provides for a change in income tax with an increase in rates for those metallurgical companies that paid more dividends than they invested.

Read more about the results of the ferrous and non-ferrous metallurgy market in July 2021 in issue No. 1441 of the monthly bulletin " Branches of the Russian economy: production, finance, securities. Ferrous and non-ferrous Metallurgy" of the AK&M News Agency.