Germany cut steel production by 18% y/y in November 2022

In 11 months of 2022, German steelmakers reduced steel production by 7.9% y/y

German steel enterprises in November 2022 reduced steel production by 17.9% compared to the same month of 2021 – to 2.77 million tons. Compared to the previous month, the indicator decreased by 11.8%. German steel association WV Stahl reported about it.

In November 2022, steel production in converters amounted to 1.96 million tons, which is 16.8% y/y and 7.5% m/m less, and in electric arc furnaces – 806 thousand tons (-20.5% y/y and -21% m/m).

In January-November 2022, steel production in Germany decreased by 7.9% compared to the same period in 2021 – to 34.16 million tons. Converter steel production amounted to 23.69 million tons (-7.5% to January-November 2021), and electric arc – 10.47 million tons (-8.9%).

Pig iron production in Germany in November 2022 decreased by 16.4% to November 2021 – to 1.84 million tons, and in 11 months – by 7.2%, to 21.73 million tons.

The output of hot-rolled products for the month decreased by 14.8% – to 2.38 million tons, and in January-November – by 7.2%, to 30.03 million tons.

As GMK Center reported earlier, EUROFER association in May has adjusted its forecast for the consumption of steel products in the European Union in 2022. Compared to the February forecast, which predicted a 3.2% increase in regional steel consumption, the association now expects a 1.9% decline.

WorldSteel expects cuts of world steel consumption in 2022 by 2.3% compared to 2021 – to 1.796 billion tons. In 2023, steel demand is expected to increase slightly thanks to the infrastructure industry by 1.0% –  to 1.814 billion tons.

Due to the drop in demand, almost all major regional markets in the world are experiencing a decline in steel production. In January-September 2022, world steel production decreased by 4.3% compared to the same period in 2021 – to 1.405 billion tons.

Germany is one of the ten largest steel producers in the world. In 2021, the country increased output of steel by 12.3% compared to 2020 – up to 40.1 million tons, ranking 8th in the world ranking of producers.