Germany reduced steel output by 4.2% y/y in January-August

In January-August 2023, German steel enterprises reduced steel production by 4.2% compared to the same period in 2022 – to 24.33 million tons. German steel association WV Stahl reported about it.

During this period, steel production in converters decreased by 0.6% y/y – to 17.52 million tons, and in electric arc furnaces (EAF) – by 12.4% y/y, to 6.81 million Pig iron production in Germany in January-August 2023 fell by 0.1% y/y – to 16.16 million tons. The output of hot-rolled products reached 21.19 million tons (-4.6% y/y).

In August 2023, steel production by German steelmakers decreased by 1% compared to August 2022, and by 2.7% compared to July – to 2.84 million tons, in particular:

• in converters – 2.14 million tons (-1% y/y);
• in EAF – 707 thousand tons (-1.1% y/y).

Pig iron production in August reached 1.97 million tons, which is 1.2% more y/y and 5.3% less m/m, and hot-rolled products – 2.43 million tons (+5.7% y/y; -4.3% m/m).

“High energy costs continue to pose huge challenges for the steel industry. There are also no signs of improvement in steel output in Germany in August. The situation is becoming more and more threatening, especially for medium-sized companies engaged in the production of electrical steel. Production in EAF is currently lower than the indicators of the crisis year of 2009,» comments WV Stahl.

As GMK Center reported earlirt, 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.