Gulf Daily reported that global crude steel production rose at an annual 2.2% rate in May as output in China hit new record levels and North American and European mills cranked up production, industry data showed, pressuring prices the world over.

Data from the World Steel Association showed that global crude steel output hit 141 million tonnes in May, nearing the record seen in March. The increase was driven by an annual 2.6% growth in China's output to 70.4 MT.

Global steel prices are at their lowest levels since August, and not far off the 3-1/2 year lows reached in June last year. The price falls have come despite an increase in demand in Western economies.

Mr Jeremy Platts analyst of MEPS said that "Growth in steel output is exceeding growth in demand and is adding to the global surplus."

According to China's General Administration of Customs, Chinese exports of steel, including stainless hit 8.07 MT in May, the highest ever level and an annual increase of 41.5% in the year to date.

Output in Europe, the 2nd largest steel producing region after China, grew by 2.7% to 15.04 MT, while output in North America grew 3.3% to 10.22 MT, the World Steel Association data showed. The fast industrializing Middle East showed the highest growth rate in May, rising 7.3% to 2.4 MT.