World crude steel production rose to 108 million metric tons in February, more than 24 percent higher than the year-ago level, according to the World Steel Association.

Global crude steel production rose 24.2 percent year-over-year in February, and operating rates hit their highest level since September 2008, the World Steel Association (worldsteel) reported this week. World steel output in the 66 countries tracked by worldsteel was 108 million metric tons last month, compared with 87 million tons in February 2009 and 109 million tons in January.

Following a 25.5 percent year-over-year increase in January, crude steel production continued to rise in all the major steel-producing countries last month.

In China, the world’s largest producer, steel output in February 2010 rose 22.5 percent to 50.4 million tons. Elsewhere in Asia, Japan produced 8.4 million metric tons of crude steel, up 54 percent from February 2009, and South Korea’s steel output increased 25 percent to 3.9 million tons.

In Europe, Germany’s production was up 34.4 percent to 3.4 million tons, while Italy produced 2.2 million tons, 28.5 percent higher than the same month in 2009. Spain produced 1.3 million tons of crude steel in February 2010, up 35.8 percent over February 2009, and France’s crude steel production was 1.1 million tons, up 10 percent compared to the same month last year.

Meanwhile, crude steel output in the United States rose 51.3 percent year-over-year to 5.98 million tons in February, according to worldsteel figures.

The United States Geological Survey’s (USGS) February primary metals leading index, which measures economic activity, climbed to 142.2 in January, a 1.4 percent increase over the 140.3-point reading in December. The USGS steel leading index rose 1.1 percent in December (the latest month for which it is available) to 106.3 from a revised 105.1 in November. A jump in the index for new housing permits helped buoy the steel index in December, as did a longer average workweek for iron and steel mills.

In January, U.S. steel mills shipped nearly 6.6 million net tons, 9 percent more than steel shipments in the last month of 2009, according to the American Iron and Steel Institute. January steel shipments were up 43.8 percent over the same month last year.

Steel shipments from U.S. metals service centers totaled 2.66 million tons in February, or 10.4 percent more than a year ago, marking the first time since April 2008 that year-over-year shipments were higher, the Metals Service Center Institute’s latest Metals Activity Report showed.

Meanwhile, global steelmakers have been bringing back capacity idled during the recession in anticipation that demand for steel will pick up this year. Worldsteel findings show the crude steel capacity utilization ratio for the 66 reporting countries in February 2010 was 79.8 percent, a 15-month high. The global utilization ratio last month rose 12 percentage points over the same period in 2009.

According to a report from The Street this week, major producers are outlining plans to meet an expected rise in demand: ArcelorMittal, the world’s biggest steelmaker, is considering an expansion of its iron ore (the primary material used in steel-making) production capacity by 67 percent to 100 million metric tons by 2015; ArcelorMittal, Nippon Steel and Posco are seeking to purchase or expand mines; and Rio Tinto, the world’s second-biggest iron ore producer, is planning to expand production to 330 million tons a year by 2015

Earlier this month, Ian Christmas, director general of worldsteel, told Reuters that the outlook for the world steel industry was brightening and the association would likely elevate its global demand growth forecast from nine percent to around 10 percent due to the improving global economy. “The industry is in a positive mood,” he said. “But still cautious about the recovery.”

In 2009, steel production declined in nearly all the major steel-producing countries and regions, although Asia and the Middle East showed positive growth for the year.

Resources

February 2010 Crude Steel Production
World Steel Association, March 22, 2010

January 2010 Crude Steel Production
World Steel Association, Feb. 22, 2010

Metal Industry Indicators
U.S. Geological Survey, February 2010

January Steel Shipments Up 9 Percent From December
American Iron and Steel Institute, March 16, 2010

U.S. Service Center Shipments of Steel Beat Year-Ago Volume for First Month Since April 2008
Metals Service Center Institute, March 16, 2010

Global Steel’s Gritty Growth Story
The Street, March 24, 2010

WSA Sees Steel Demand Up, Asia to Profit Most
by Rebekah Curtis
Reuters, March 8, 2010

World Crude Steel Output Decreases by -8.0% in 2009
World Steel Association, Jan. 22, 2010