Czech crude steel production and apparent steel demand rebounded slightly in the first quarter but a more substantial recovery is being hampered by low demand, still high energy prices, stringent climate regulation and the uncertain geopolitical situation, says the Czech and Slovak steel association, Steel Union.
Production rebounded 4% on-year in Q1 to 670,000 tonnes, with apparent steel consumption up 1.5% to 1.39 million tonnes. This represents welcome relief after full-year 2024 saw Czech crude steel output sink to an all-time low of 2.44mt, down 25% on-year, with apparent consumption at 5.5mt, also the lowest-ever figure except for the 2009 financial crisis year.
Q1 output of long products, flats and pipe rose 2%, 5% and 41% respectively to 489,000t, 142,000t and 82,000t. However, the rebound is due to a low base in 2024 when production shut down at Liberty Ostrava.
Czech steel exports rose 9% on-year in Q1 to 907,000t, with imports also up, by 10%, to 1.84mt, Kallanish notes.
At a recent roundtable discussion on the future of the Czech chemistry and steel industries, representatives warned that immediate policy action is required to ensure their survival. Czech and the wider EU industry is suffering from low demand and worsening economic conditions in Europe, high energy intensity of production and rising energy costs, and unreasonable demands for greener production without adequate support, they noted.
“We are pleased that the Steel and Metals Action Plan has been developed; however, this has only provided a diagnosis of the state of the steel industry and we are waiting for a specific treatment procedure to be determined. We’re appealing for the elaboration of the impact of decarbonisation measures on Czech industry and thus on the entire economy of the Czech Republic,” said Steel Union chairwoman Marcela Kubalova.
Adam Smith Austria
