EU records first production growth in 3 years

The EU recorded in 2024 its first annual crude steel produciton growth since 2021, but output still remained below the Covid-stricken year of 2020 as financial difficulties hit certain steelmakers.

EU crude steel produciton increased 2.6% on-year in 2024 to 129.49 million tonnes, Kallanish notes from worldsteel data.

Largest regional producer Germany saw production rebound 5.2% on-year in 2024 to 37.2mt, although this came from a multi-year low base in 2023. Output remained below pre-Covid tonnages; however, it surpassed 2020 and was the highest since 2019, with the exception of the post-Covid rebound year, 2021.

Second-largest producer Italy fared much worse, seeing crude steel output drop 5% in 2024 – from an already-low base – to 20.01mt, amid continuing production difficulties at the Taranto steelworks, one of Europe’s largest. This was the lowest production figure since 2009.

France saw 2024 output rise 7.6% to 10.76mt, but from a multi-year-low base, with 2023 seeing a blast furnace fire take capacity offline. Spanish output rose 3.3% to 11.82mt, the highest since 2019 except for 2021.

EU output last year was also boosted by the return to operation of the blast furnace at Ijmuiden, which boosted Netherlands output 36% to 6.37mt, the highest since 2019 except for 2021. Belgian output rose an estimated 21% to 7.1mt, also the highest since 2019 except for 2021. Polish output grew an estimated 10% to 7.08mt but from a multi-year-low base.

Amid production stoppages at various Liberty Steel plants, crude steel production fell in Czech Republic, Romania and Hungary. In the first of these countries, output plunged 25% to 2.55mt, as activity at its largest steelworks, Ostrava, ground to a halt and the plant was put up for sale.

In Romania, output dropped an estimated 16% to 1.36mt – Galati is Liberty’s only remaining operational plant in Central and Eastern Europe. Hungarian output fell to an estimated 240,000t, down 50% versus 2023 and versus 1.5mt in 2020.

European steelmakers’ association Eurofer has been lobbying relentlessly for tighter EU steel import restrictions and an EU steel and industrial policy amid increased costs and declining competitiveness in the bloc. The new European Commission, which started its term in December, is currently working on both issues.

kallanish.com