German Klöckner expects steel demand to grow in 2024

German steelmaker and distributor Klöckner & Co. predicts an increase in steel demand in Europe and North America in 2024. This is stated in the company’s report for 2023.

«In 2024, with market conditions increasingly returning to normal and inflationary pressures easing, we expect significantly stronger demand for steel in our key markets of Europe and North America. Accordingly, we forecast significant growth in shipments, sales and EBITDA. Already in the first quarter, the figures will grow significantly compared to the previous quarter, with EBITDA reaching €30-70 million,» the statement said.

Steel shipments to North America are expected to grow by 1-3% in 2024, mainly due to the revival of the construction and energy sectors. Shipments to Europe will increase by 0-1%, mainly for the energy sector.

Despite the persistently difficult economic environment, Klöckner & Co ended 2023 with EBITDA of €190 million (-53.3% y/y). The net loss amounted to €190 million compared to net profit of €259 million in 2022, mainly due to the sale of the EU distribution business. The company’s revenue amounted to €6.96 billion, down 17% y/y due to significantly lower steel prices compared to 2022.

Shipments in 2023 amounted to 4.25 million tons compared to 4.19 million tons in 2022. The slight increase was mainly due to the strong performance of Kloeckner Metals Americas.

As GMK Center reported earlier, average monthly steel sales volumes in German distribution centers in 2023 decreased by 5% compared to 2022, to 786 thousand tons from 826 thousand tons. Last year, monthly steel sales never exceeded 1 million tons. As of the end of 2023, steel stocks amounted to 1.85 million tons, up from 1.95 million tons a year earlier.

Germany is among the ten largest steel producers in the world according to World Steel. In 2023, the country reduced steel production by 3.9% compared to 2022 – to 35.4 million tons, ranking 8th in the global ranking of producing countries.