Steel production

In June, Polish steelmakers reduced steel output by 60% y/y and 62.6% m/m

In January-June 2023, Polish steel enterprises reduced steel production by 18.6% compared to the same period in 2022 – to 3.397 million tons. This is evidenced by WorldSteel Association’s data.

In June, Polish steelmakers sharply reduced steel production to 247 thousand tons, which is 60% less compared to June 2022 and 62.6% less than May 2023. Thus, steel production in the country fell to a record low.

The average monthly steel production in Poland in January-June amounted to 566.2 thousand tons, while for the same period in 2022 the figure was at the level of 695.5 thousand tons (-18.6% y/y).

In 2022, Poland reduced steel production by 8.6% compared to 2021 – to 7.73 million tons. Thus, the country took 22nd place in the WorldSteel global ranking of steel producers.

In general, steel production in the EU countries in June 2023 fell by 11.1% compared to June last year – to 10.6 million tons. In January-June 2023, 66.3 million tons of steel were produced in the EU, which is 10.9% less y/y.

The decline in steel production is likely due to weak demand for finished products, as well as unfavorable pricing conditions. High production costs of steelmakers do not allow reducing steel prices to levels that would be favorable for buyers, so the demand for domestic products is low. At the same time, imported steel is in demand due to lower prices.

As GMK Center reported earlier, in 2022 European steelmakers reduced steel production by 10.5% compared to 2021 – to 136.7 million tons. Overall, global steel output fell 4.3% y/y last year – to 1.831 billion tons.