6 January 2025 – Germany, one of the ten largest steel producers in the world, once again increased its crude steel production in November – has the valley of tears been passed? The US markets are boosted by strong economic data.
Strong economic data boosts US markets
The US economy continues to show impressive strength: initial jobless claims surprisingly fell to an eight-month low in the week ending December 28, 2024. The number of people receiving unemployment benefits also fell significantly, reaching the lowest level in three months. The ISM Purchasing Managers’ Index for the manufacturing sector improved from 48.4 to 49.3 points in December, signaling the strongest development since March. The sub-index for new orders rose particularly positively from 50.4 to 52.5 points, marking the highest level since May 2022. The production sub-index also exceeded the 50-point mark. This robust data is boosting market confidence and driving share prices higher.
German steel production continues to rise in November
Germany, one of the world’s ten largest steel producers, was once again able to increase its crude steel production in November. This is according to data published by the German Wirtschaftsvereinigung Stahl in December 2024. Based on the latest data, crude steel production in Germany is likely to have been around 38 million tons for 2024 as a whole, just 5% below the supposedly magical threshold of 40 million tons of crude steel per year.
Steel makers really in the valley of tears?
This may raise the legitimate question in some people’s minds as to how this fits in with the valley of tears that domestic steel makers have been making in increasingly shrill tones to the public and German and European politicians for months, conjuring up the demise of steel production in Europe.
The claims made in or to the media are already taking on dubious tendencies, from demands for a revision of the EU Carbon Border Tax CBAM to allegedly too expensive CO2 certificates and the loss of all free EU ETS certificates in 2027.
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