In January, crude steel production decreased by 12.7% y-o-y to 2.68 million tons. The cautious recovery process, which started from the bottom in recent months, was interrupted with this decline.
Kerstin Maria Rippel, Managing Director of the German Steel Industry Association (WV Stahl), pointed to the weakness in the sector and said, “The sluggish start to the year is further evidence of how urgently economic stimulus is needed to overcome the economic shock in Germany.” “We expect the new federal government to act immediately and boldly in Berlin and Brussels,” Rippel said, addressing the authorities in Europe and Germany.
In January, all production segments in Germany recorded declines. Steel production by basic oxygen furnaces (BOF) decreased 15.9% y-o-y to 1.85 million tons. The amount of steel produced by electric arc furnaces (EAF) also fell by 4.5% to 825 thousand tons. Pig iron production fell 16.3% y-o-y to 1.71 million tons, while output of hot-rolled steel products fell 8.7% to 2.48 million tons.
In Germany, rising energy costs, weak domestic demand and global competitive pressure continue to challenge steelmakers. Sector representatives demand structural reforms and incentive packages to support the steel industry.
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