German flat steel inventories fell further to a historically low level in February due to a continuing shortage of materials, data from the German Steel Stockholder Association (BDS) show.
German flat steel stocks remain at 33-year low
Flat steel stocks in the German distribution sector fell 2.6% month-on-month to 1.11 million mt, remaining at a 33-year low. The year-on-year decline was 8.2%.
General material shortage for flat steel
The low inventory levels highlight the current shortage of material for flat steel.
Market participants reiterated that material availability took precedence over price and purchasers were scrambling to procure volumes.
The figures match the general situation in Europe. High prices, long lead times and hardly any material available. In addition, the industry is being hammered by strict import restrictions.
Onset of winter and the following chaos causes sales figures to fall
As already seen in German steel production, sales of flat steel decreased by around 10% in February. This decline can almost certainly be attributed to the massive onset of winter in Germany followed by traffic chaos. The bad weather lasted for almost two weeks and even forced one steel producer to declare force majeure. Public life came to an almost complete standstill in some German states.
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