German steel production grew by 6% in January

Crude steel production in Germany rose again in January as businesses continue to ramp up production, surpassing January 2020 levels by 6%, German Steel Federation WV Stahl reported on February 19.

Crude steel production in Germany increased to 3.3 million tonnes in January, but while production figures have returned to 2019 levels, production will still be “relatively low,” the Steel Federation said.

However, the recovery in demand since last summer has led to a widespread increase in production at factories, with production increasing on an annualized basis since August.

Blast furnace steel production increased 7.1% year-on-year to 2.35 million tonnes in January, while electric arc furnace steel production increased 3.3% to 956,000 tonnes.

Pig iron production increased 7.9% year on year to 2.2 million tonnes. Hot-rolled steel production increased by 10% to 3 million tonnes.

The German steel market is currently suffering from material shortages and volumes are expected to increase by the end of the second quarter as a result of further increases in capacity utilization.

Steel prices have risen sharply since the third quarter of 2020, according to Platts HRC’s daily Nordic valuation for Northern Europe from 18 February, but reached € 730 per tonne EXW in the Ruhr area for hot rolled coil during the Lunar New Year.

According to Platts’ monthly German steel sentiment survey for February, market participants expect a small increase in production in the short term, but sources said that any additional output would be used to reduce the current mill order backlog as lead times remain unusual. long lasting. from Western European factories, until the beginning of summer.

In February, factories became even more difficult to supply due to a cold snap: Salzgitter announced force majeure on February 10, and Thyssenkrupp confirmed an increase in delivery delays.

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