News Global Market Germany 21 March 2023
Pig iron production in the country decreased by 1.1% y/y in February
In February 2023, German steel enterprises reduced steel production by 6.9% compared to the same month of 2022 – to 2.994 million tons. Compared to the previous month, the indicator increased by 2.3%. German steel association WV Stahl reported about it.
In February 2023, steel smelting in converters amounted to 2.04 million tons, which is 4.9% less y/y and 4% less m/m, and in electric arc furnaces (EAF) – 950 thousand tons (-10.8% y/y and +19.9% m/m). Steel production in the EAF is gradually increasing amid the restoration of capacities that were suspended in the second half of last year due to the increase in the cost of electricity.
Pig iron production in Germany in February 2023 decreased by 1.1% to February 2022 – 1.96 million tons, and to the previous month – by 0.05%.
The output of hot-rolled products for February decreased by 6.7% – to 2.63 million tons, and in comparison with January 2023 it increased by 2.6%.
As GMK Center reported earlier, Germany is among the ten largest steel producers in the world according to WorldSteel. 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.