Visible steel consumption in the Czech Republic decreased by 13.7% y/y in January-September

Steel production in the country decreased by 21% y/y in 9 months

Apparent steel consumption in the Czech Republic in January-September 2023 decreased by 13.7% or 700 thousand tons compared to the same period in 2022, to 4.4 million tons. This is evidenced by data from the Czech steel association Steel Union.

Steel production by Czech steelmakers in the first 9 months of 2023 decreased by 21% y/y – to 2.64 million tons.

In the third quarter, apparent steel consumption in the Czech Republic amounted to 1.37 million tons, the lowest level in the last 10 years.

«Unfortunately, the significant downturn in the entire steel industry that we have seen since the middle of last year continues,» the Steel Union said.

During July-September, the country’s steelmakers reduced the production of graded products by more than 25% y/y, flat products – by 3% y/y, and pipes – by 9.5% y/y. The reason is the ongoing crisis in the construction industry, not only in the Czech Republic, but also in neighboring countries, especially in Germany, and the overall bad situation in the industry.

«The situation has not been normal for several years, so it is very difficult to predict what will happen next. The disorganized construction industry and the difficult situation in Germany are having an impact. I do not expect a quick turn for the better, but rather around the middle of next year. The downturn starts now, at Christmas, many companies will be idle for a while or will be doing maintenance. So we’ll probably have to wait until January to see what the future holds,» said Daniel Urban, chairman of Steel Union.

As a result of the reduction in steel production, the volume of exports of steel products from the Czech Republic decreased to 842,000 tons in the third quarter. This is the lowest figure since the economic crisis of 2009. At the same time, the import of steel to the Czech Republic during this period reached 1.49 million tons compared to 1.52 million tons a year earlier.

As GMK Center reported earier, in 2022, the visible consumption of steel decreased by 16% compared to 2021 – to 6.6 million tons. This is the biggest drop in the last 10 years. Last year, steel production decreased by 11% y/y – to 4.2 million tons.