Germany increased steel production by 2.7% m/m in May

In May, the production of pig iron in the country increased by 1.4% m/m

In May 2023, German steel enterprises increased steel production by 0.2% compared to the same month of 2022 – up to 3.284 million tons. Compared to the previous month, the indicator increased by 2.7%. German steel association WV Stahl reported about it.

In May 2023, steel production in converters amounted to 2.29 million tons, which is 4.4% more y/y and 1.3% m/m, and in electric arc furnaces (EAFs) – 958 thousand tons (-8.6% y/y and +2.2% m/m).

Pig iron production in Germany in May 2023 increased by 4.4% to May 2022 – up to 2.1 million tons, and by 1.4% to the previous month.

The output of hot-rolled products in May fell by 3.1% – to 2.74 million tons, and in comparison with April 2023, it increased by 0.4%.

In January-May, German steelmakers reduced steel production by 4.7% y/y – to 15.6 million tons, pig iron – by 0.6% y/y, to 10.24 million tons, and for hot-rolled steel – by 5.8% y/y, to 13.63 million tons.

As GMK Center reported earlier, Germany is among the ten largest steel producers in the world according to World Steel. In 2022, the country reduced output of steel by 8.4% compared to 2021 – to 36.8 million tons, taking 7th place in the world ranking of producing countries.

The sharp rise in energy prices as a result of Russia’s war against Ukraine had a negative impact on Germany’s steel industry. The cost of electricity and gas has risen sharply for all EU countries at a time when demand for steel has collapsed. Producers had to reduce production or stop capacities to minimum volumes. In early 2023, demand stabilized and prices began to rise, allowing steelmakers to gradually restart capacity.

Despite the difficult situation, German steel industry is gradually transitioning to non-electric arc steel production. In 2022, the share of steel produced in electric arc furnaces reached 29.8%, or 10.99 million tons.