German steel production drops in September

Crude steel production in Germany was 3.352 million tonnes in September, minimally higher than in August, but -4% down on September 2018, steel association Wirtschaftsvereinigung Stahl (WV Stahl) tells Kallanish.

This defies the observation of “… a first sign of stabilisation, even if on a moderate level” that WV Stahl had stated in August, when output was actually 0.8% up year-on-year. 

The different production routes reduced their output at different degrees. While the September drop was -4.9% at oxygen-route mills, it was only -2% at EAF mills. This is in line with the more profound difficulties in the automotive industry, which is supplied strip mainly from oxygen mills, against a relatively strong construction industry and its EAF-dominated rebar demand.

Over the year thus far, the trend still had a different emphasis, with production at oxygen-route mills down -4% in the first nine months, while that of EAF mills was down -5.3%. Total crude steel production from January through September was 30.552mt, down -4.4% on the first nine months of 2018.