EU decreased steel production by 6.8% y/y in May 2022

In May 2022, EU produced 12.9 mln tons of crude steel. This is 6.8% lower than in the same month last year. TOP 10 EU countries by drop in steel production include France (-12.3%), Croatia (-11.6%), Germany (-11.5%), Finland (-10.3%), Netherlands (-10.2%), Spain (-10.2%), Bulgaria (-9.8%), Poland (-9.0%), Czechia (-8.0%), Austria (-5.0%).

As of 27.07.2022, nine steel plants in EU fully or partially paused steel production. In particular, two steel plants (Arvedi and ArcelorMittal Warszawa) completely stopped production. Their annual crude steel capacity is estimated at 4.8 mln tons. Salzgitter postponed the restart of the blast furnace until September, while previously this re-launch was planned for May-June.

EU steel plants suffer from weak demand, falling steel prices and rising energy costs. Next winter the EU may face a gas shortage, which will negatively affect the local industry. Energy price growth is expected to continue this year. So, more and more steel plants will be forced to reduce production.