Austria continues to increase steel production in November
Austria’s steelmakers increased crude steel production in November compared with the previous month, according to worldsteel data.
Output amounted to 562,260 tonnes, up by 4.5% from October but flat year-on-year, Kallanish notes.
Austria remained in 23rd place in the ranking of top global steel producers, the data show.
In January-November, the country produced 6.57 million tonnes of steel, flat on-year.
Overall EU output in November was 1.7% more on-year at 10.68mt.
In the first 11 months of the year, steel production was 4.6% higher on-year versus the same period in 2023 at 119.9mt.
Austrian steelmaker voestalpine recently said it performed well in the first half of its business year through March 2025 despite the difficult economic environment in Europe. Demand remained strong from the railway infrastructure and aerospace sectors, and for high-bay warehousing systems made from advanced steel profiles.
The group’s revenue in H1 reached €8 billion ($8.3 billion), which is 5.5% or around €500 million below the comparative period in the first half of 2023/24. Ebitda decreased by 20.5% y-o-y to €718m and was influenced by negative one-off effects including the sale of its Buderus Edelstahl subsidiary and closure of automotive operations in Germany.
The decline in volumes was partly offset by a better product mix with higher profits, while lower sales prices were partly compensated by reduced raw materials values.
Svetoslav Abrossimov Bulgaria
Germany posts strongest output growth rate among top-10 steel-producing countries
Global crude steel production increased by just 0.8% to 146.8 million tonnes in November compared with the same month in 2023, but output fell by 1.4% year on year from January to November, worldsteel said on Monday December 23.
Germany
Crude steel production in Germany was up by 8.6% year on year to 2.9 million tonnes in November, according to worldsteel, with the output of Europe’s largest steel producer also up by 5.3% in the year to November compared to the same period in 2023 (see chart below).
Sources said the was probably mostly due to the decline in October and November 2023, when production cuts were introduced to balance supply and demand in the European steel market.
The increase could also be partially driven by the increase in the production of semi-finished steel products for export as a substitute for sanctioned Russian material.
The European Union’s 27 member states also reported a combined increase in crude steel production in November compared with the same month in 2023, with output up by 3.9% to 10.7 million tonnes. The year-on-year rise from January to November was 2.2%, with output reaching 119.9 million tonnes.
But despite the increased output, sources said that demand for finished flat and long steel products remained sluggish across Europe, with oversupply frequently cited as one of the main reasons hindering a stronger price rebound.
India
India was the second top-10 steel-producing country to record a significant increase in crude steel production in November, with output up by 4.5% to 12.4 million tonnes compared with the same month in 2023.
Output for the year to November was also up, increasing by 5.9% compared to the same period in 2023.
And larger steel mills in India recently tried to increase domestic finished steel prices.
A slight price rebound was achieved on expectations that the Indian government might impose provisional duties on steel imports before the completion of a safeguard investigation announced on December 19.
Earlier in December, India’s Ministry of Steel proposed a 25% safeguard duty on imports of all major flat steel from other Asian countries, such as Japan, South Korea, and Vietnam.
But the higher prices for HRC struggled to gain tractions, with demand for steel failing to match the increase in supplies following the capacity additions by all major steel mills in India since March, Fastmarkets understands.
China
In China, crude steel production moved up 2.5% year on year in November to reach 78.4 million tonnes, but output was down by 2.7% from January to November compared with the same period in 2023 and slow domestic consumption in the world’s largest steel-producing country remained a major concern.
To compensate for the sluggish domestic consumption, China has focused on exports in recent months, sources told Fastmarkets, and despite exports falling month on month in November, compared with the same month in 2023, volumes shipped out of the country increased, according to preliminary data ffrom the General Administration of Customs.
Steel exports amounted to 9.28 million tonnes in November, which was down by 17% from 11.18 million tonnes in October, but up by 16% from 8.01 million tonnes in November 2023.
But competitive Chinese steel prices in overseas markets resulted in an increase in trade protectionism around the world.
Russia
Estimated crude steel production in Russia fell by 9.2% year on year in November, to 5.5 million tonnes, worldsteel said, with output also down by 7% in the year to November, compared to the same period of 2023.
Key steel consuming industries in Russia were unable to generate sufficient demand to maintain high production rates in the country.
Russian iron and steel export volumes fell to 15.5 million tonnes in January-October 2024, according to data from Global Trade Tracker – 23,9% lower than the same period in 2023, due to international sanctions imposed following Russia’s attempted invasion of Ukraine.
In addition to countries and companies rejecting Russian steel exports, the prices achievable in the few countries still willing to do business with Russia have continued to fall.
European HRC prices unchanged amid holiday inactivity
Most market participants were still on leave, planning to return after Monday January 6, Fastmarkets understands.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Northern Europe at €565.00 ($588.48) per tonne on Tuesday, unchanged since December 20.
The index was up by €5.00 per tonne month on month.
It is unclear whether new, higher offers of HRC across Europe will be accepted by buyers after the market restarts in the first days of January.
Shortly before the Christmas and New Year holidays, ArcelorMittal announced an increase of €30 per tonne for offers of HRC with February/March delivery across Europe.
Another integrated mill in Northern Europe was heard to have followed the move, Fastmarkets understands.
Thus, the latest official offers for February/March-delivery HRC from Northern European mills were heard at €600-630 per tonne ex-works or delivered. But tradable levels just before the winter holiday break were heard at €560-580 per tonne ex-works.
Fastmarkets calculated its daily steel hot-rolled coil index domestic, exw Italy at €562.50 per tonne on Tuesday, unchanged since December 23.
The index was up by €4.17 per tonne month on month.
Local suppliers’ latest official offers for HRC with delivery in February and March were heard at €580-620 per tonne delivered, which would net back to €570-610 per tonne ex-works.
Buyers’ estimations of the workable market level for such material were at €570-580 per tonne delivered, which is equivalent to €560-570 per tonne ex-works.
The market for imported HRC also remained quiet during the winter holiday slowdown.
Industry sources expected that the appetite for import bookings would remain low due to recent developments with safeguards and a pending anti-dumping probe against Egypt, India, Japan and Vietnam.
The latest import offers of February-shipment HRC from Turkey to Italy were heard at $590 per tonne CFR including the anti-dumping duty.
Just before the holiday break across Europe, South Korea-origin coil was on offer to Italy at €580 per tonne CFR, industry sources told Fastmarkets.
In mid-December, a transaction for Ukrainian HRC to Italy was heard at €530 per tonne CFR.