Austria reduced steel production by 10.4% m/m in February

In February 2023, Austrian steel enterprises reduced steel production by 10.4% compared to the previous month – to 534 thousand tons. This is evidenced by World Steel Association’s data.

Compared to February 2022, steel production in Austria decreased by 11.3% in February 2023. In January-February, the country’s steelmakers produced 1.13 million tons of steel, which is 11.2% less than in the same period of 2022.

In 2022, Austrian steelmakers reduced steel production by 4.7% compared to 2021 – to 7.51 million tons. In December 2022, 560,000 tons of steel were produced, which is 13.8% less y/y and by 0.5% more m/m.

In general, steel production in the countries of the European Union in February 2023 fell by 12.6% compared to February last year – to 10.5 million tons. In January-February 2023, 20.7 million tons of steel were produced in the EU, which is 14.3% less y/y.

During the second half of 2022, European steelmakers massively reduced production capacity amid rising electricity tariffs and unfavorable market conditions. At the same time, the European market was filled with imported steel products, which attracted consumers at lower prices than local ones. According to Fastmarkets estimates, at the end of 2022, about 14-15 million tons of annual steel capacities were stopped in Europe.

Already at the end of 2022 – beginning of 2023, EU steelmakers began to restart the stopped capacities, as the visible demand for steel and product prices began to grow, and the costs of energy resources – decreased and stabilized. In addition, the industry predicts further growth in demand for steel products.

As GMK Center reported earlier, in 2022 European steelmakers reduced steel production by 10.5% compared to 2021 – to 136.7 million tons. In general, global steel output last year fell by 4.3% y/y – to 1.831 billion tons.