Steel production

In January-April, Austrian steel companies reduced steel output by 6.3% y/y

In April 2023, Austrian steel enterprises increased steel production by 6.5% compared to the previous month – up to 651 thousand tons. This is evidenced by World Steel Association’s data.

Compared to April 2022, steel production in Austria decreased by 0.8% in April 2023. In January-April, the country’s steelmakers produced 2.48 million tons of steel, which is 6.3% 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 April 2023 fell by 11.7% compared to April last year – to 11.1 million tons. In January-April 2023, 44.4 million tons of steel were produced in the EU, which is 10.2% less y/y.

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.

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.

At the beginning of 2023, EU steelmakers began restarting idled capacity as apparent steel demand and product prices began to rise and energy costs declined and stabilized. In addition, the industry expects further growth in demand for steel products.