Economic situation - Steel industry expects production to fall by 4 percent
The steel industry in Germany is expecting crude steel production to fall by four percent in 2023 compared to the previous year. At 35.5 million tons, 2023 will be one of the weakest years in terms of production, the German Steel Federation reported in Berlin on Tuesday. Only in the financial crisis year 2009 was less crude steel produced.
The industry association cited high electricity prices and the weak economy as the main reasons for this. A decline of around 8 percent in 2022 compared to 2021 had already been recorded.
According to the information, steel production from scrap, which requires a lot of electricity, is particularly affected. The production volume will fall by 11% to 10.1 million tons in 2023. "The last time production fell below this low level was thirty years ago," says the association.
The industry is also concerned about the duration of the recession. With the exception of a slight increase in September 2023, there has been a steady decline in production since March 2022. "In the cyclical and volatile steel industry, such a protracted negative cycle has not yet been observed in Germany," it said.
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- Despite the challenges in the steel industry, Germany remains a significant player, with North Rhine-Westphalia being one of the key regions contributing to its production.
- The steep increase in energy costs has put a strain on the steel industry in Germany, forcing many companies to reduce their production levels, including those in Berlin.
- The economic impact of the declining steel industry in Germany extends beyond production figures, as it also affects related sectors, such as energy supply companies and logistics services.
Source: www.stern.de
