German steel production jumps significantly
German steel production jumps significantly

26 April 2024 – German steel production emerges from the vale of tears and more than doubles in some cases. In China, stocks of steel products are emptying. And Taiwan expects a sustained upward trend for stainless steel.

Chinese demand for steel picks up

According to the Chinese Steel Association (CISA), Chinese stocks of the 5 most important finished steel products have fallen by more than 5.4% or 710,000 MT in just a few days, indicating a significant increase in demand and requirements.

Taiwan expects further upward trend for stainless steel

Taiwan is also reporting robust demand for stainless steel and an increase in prices. Taiwanese market participants expect the upward trend to continue. Further price increases are expected from local manufacturers in May.

German steel production jumps significantly upwards

It seems that the German steel giant has awoken from its vale of tears. In March 2024, crude steel production in Germany jumped to its highest level since October 2021. The dramatic recovery of the German steel industry is thus continuing for the third month in a row. This is confirmed by the latest figures from the German Wirtschaftsvereinigung Stahl.

EAF mills double production

Since December 2023, crude steel production has increased by 33%, oxygen steel production by more than 15% and the production of hot-rolled products by over 32%. German EAF manufacturers recorded particularly strong growth in the same period. Steel production in electric arc furnaces has more than doubled since December and has also reached the level of the boom year 2021.

The German Wirtschaftsvereinigung Stahl, which has been trying for years to portray the German steel industry in the worst possible light in order to push through billions more in subsidies, is once again putting the current recovery in a bad light. And argues with “inventory cycles”.

If it were the case, as is often rumoured and maligned, that these are all just inventory cycles, then the warehouses in Germany and the EU would be bursting at the seams. But since when have stockholders been buying if nothing is flowing out at all?

EU has been undersupplied with steel for more than a decade

In the current EU Safeguard Review, the Gerber Group had already clearly explained that the European market has been undersupplied for more than a decade and that this undersupply has even gained significant momentum in recent years. Based on statistical surveys, the shortfall in the EU is likely to have already amounted to more than 20 million metric tons of steel and stainless steel in 2023.

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