German steel production likely to reach 40mt

Crude steel output at German mills from January through October this year rose 15% over the first ten months of 2020 to 33.56 million tonnes, according to figures provided by steel federation WV Stahl.

In the reporting month of October, production at oxygen-route mills rose by 13% to 2.52mt, whereas that of EAF mills sank by nearly 5% to 1.13mt. This apparently odd development can be attributed to strong activity at EAF mills in autumn 2020, which were faster and more flexible than BOFs to respond to the rapid demand resurgence following lockdowns.

While WV Stahl refrains from making interpretations or forecasts, a clearer word comes from the chief economist of steel recycling federation BDSV, Daniela Entzian. “We are optimistic that steel production will again reach 40 million tonnes this year, which is also good news for the demand for scrap,” Kallanish heard her say during BDSV’s annual meeting on Thursday (see separate story).

One factor in favour of higher production in the fourth quarter is the restart in October of the biggest blast furnace at thyssenkrupp’s works in Duisburg, following a reline.

Christian Koehl Germany