Germany cut steel production by 2.3% in August 2022

In January-August 2022, German steelmakers reduced steel output by 4.8%

German steel enterprises in August 2022 reduced steel production by 2.3% compared to the same month in 2021 – to 2.87 million tons. German steel association WV Stahl reports about it.

In August 2022, BOF steel production amounted to 2.16 million tons, which is less by 0.1% y/y, and EAF production – to 715 thousand tons (-8.6% y/y).

In January-August 2022, steel production decreased by 4.8% compared to the same period in 2021 – to 25.4 million tons. BOF steel production amounted to 17.63 million tons (-4.6% to January-August 2021), and EAF production – to 7.78 million tons (-5.2%).

Pig iron production in Germany in August 2022 remained at the level of August 2021 – 1.94 million tons, and in 8 months decreased by 4.3%, to 16.17 million tons.

The output of hot-rolled steel for the month decreased by 4.3% – to 2.36 million tons, and in January-August 2022 – by 5.1%, to 22.4 million tons.

As GMK Center reported earlier, European Steel Association (EUROFER) has adjusted its forecast for the consumption of steel products in the European Union in 2022. Compared to the February forecast and the expectation of regional metal consumption growth of 3.2%, the association now expects a decline of 1.9%.

In almost all major regional markets in the world, due to drop in demand the decline of iron&steel production continues. In June, steel producers’ margins were 25% lower than the 2018-2019 average, according to World Steel. As a result, most companies, including ArcelorMittal and Salzgitter in Germany, are temporarily shutting down their facilities or reducing production.

According to World Steel, 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.