German crude steel production saw some recovery in the first half-year, from the historical low seen last year, Kallanish learns from national steel federation Wirtschaftsvereinigung Stahl.
January-June crude steel output totalled 19.4 million tonnes, up 4.5% on the first half of 2023. The increase was especially pronounced in June, with an output of 3.19mt, up 8.9% on-year. It must be noted, though, that June 2023 marked a similarly steep year-on-year fall, with output down over 8% on June 2022.
The drastic fluctuations come mainly from electric arc furnace mills, which cut back production after power prices had peaked last year. The year-on-year production increase at EAF mills in June was a considerable 20.8% – to 1.01mt – whereas oxygen-route mills hiked output 4.1%, to 2.17mt.
In H1, EAF mills grew output by 8.7%, to 5.89mt, with converter-based mills hiking by 2.7%, to 13.48mt.
“German steel production appears to have passed the nadir,” says Kerstin Maria Rippel, managing director of WV Stahl. She warns, however, that “the sustainability of this trend is by no means guaranteed”, given the weakness in demand from important consumer sectors.
Although power prices have come down from the heights of the last two years, they are still higher than before the Covid pandemic, and, most of all, higher than in most other countries, Rippel notes. The surge in grid fees, especially, is playing a big part in this cost burden, she adds.
Christian Koehl Germany
