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German economy grows despite challenges
German economy grows despite challenges

25 August 2022 – The German economy grew surprisingly in the second quarter of 2022, according to official data. Hot-rolled coil demand in China has increased significantly. And Turkish companies are at risk of being sanctioned by the United States when trading with Russia.

German economy grows despite challenges

Good news from the largest EU economy, Germany. According to the latest calculations, gross domestic product (GDP) rose by 0.1% in Q2 2022 compared to Q1 2022 – adjusted for price, seasonal and calendar effects – and thus reached the pre-crisis level of Q4 2019. The Federal Statistical Office (Destatis) said the development was slightly more positive than reported in the quick release on 29 July 2022.

“Despite the difficult global economic environment, the German economy held its ground in the first two quarters of 2022,” said Dr Georg Thiel, President of the Federal Statistical Office. In Q1 2022, the German economy had grown by 0.8 %.

Chinese hot-rolled coil demand strong

Positive figures from China as well. The demand for hot-rolled coil (HRC) has increased significantly. The HRC stocks in the social warehouses have fallen by approx. 155,000 MT compared to the previous week. Looking at the same period last year, stocks are actually down by more than 15%.

Turkish businesses doing trade with Russia could face sanctions from the US

TÜSIAD, Turkey’s top business association has confirmed receiving a letter from the US Treasury warning of possible sanctions if it continues doing business with Russia.

US deputy secretary of the Treasury Adewale Adeyemo sent a letter to TUSIAD, Turkey’s top business association stating that the Turkish companies which establish relations with sanctioned Russian individuals and organizations are also at risk of sanctions.

Washington is growing increasingly alarmed that the Russian government and businesses are using Turkey to evade Western financial and trading restrictions imposed in response to the Kremlin’s invasion of Ukraine six months ago.

Turkish steel industry concerned

The Turkish Steel Exporters’ Association expressed concern as Russian steel producers are currently trying to sell larger quantities of steel to Turkey in the absence of alternative markets.

What about stainless steel from Turkey?

With the possibility of US sanctions against Turkish producers, the focus is likely to be on conventional steel products and stainless steel will not be affected. Russia is one of the few major economies that has almost no stainless steel production of its own.

Nevertheless, this is another important reminder that companies and buyers need to look very carefully at who they trade with. And also how suppliers deal with their responsibility towards their customers in the current situation.

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