In 10 months of 2022, German steelmakers reduced steel output by 6.9% y/y

German steel enterprises in October 2022 reduced steel production by 14.4% compared to the same month of 2021 – to 3.14 million tons. German steel association WV Stahl reported about it.

In October 2022, steel production in converters amounted to 2.12 million tons, which is 16.3% less y/y, and in electric arc furnaces – 1.02 million tons (-10.1% y/y).

In January-October 2022, steel production decreased by 6.9% compared to the same period in 2021 – to 31.39 million tons. Converter steel production amounted to 21.73 million tons (-6.5% to January-October 2021), and electric arc production – to 9.67 million tons (-7.8%).

Pig iron production in Germany in October 2022 decreased by 20.4% to September 2021 –  to 1.83 million tons, and in 10 months – by 6.2%, to 19.89 million tons.

The output of hot-rolled products for the month decreased by 13.2% – to 2.65 million tons, and in January-October – by 6.5%, to 27.65 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 and the expectation of regional metal consumption growth of 3.2%, the association now expects a decline of 1.9%.

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.

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.