In February 2023, steel smelting in converters amounted 2.04 million tons, which is 4.9% less y-o-y and 4% less m-o-m, and reached 950 thousand tons (-10.8% per year) and +19.9% m/m) in electric arc furnaces (EAF).
Steel production at EAF is gradually increasing with the restoration of capacities suspended in the second half of last year due to an increase in the cost of electricity.
In February 2023, pig iron production in Germany decreased by 1.1% compared to February 2022 by 1.96 million tons and decreased by 0.05% compared to the previous month.
Production of hot rolled products in February decreased by 6.7% to 2.63 million tons and increased by 2.6% compared to January 2023.
Germany is among the ten largest steel producers in the world according to Worldsteel. In 2022, the country reduced its steel production by 8.4% compared to 2021 to 36.8 million tons and ranked 7th in the world producer countries.
The sharp increase in energy prices as a result of the Russia-Ukraine war has had a negative impact on Germany's steel industry. The cost of electricity and gas has increased sharply for all EU countries at a time when steel demand has collapsed. Manufacturers were forced to reduce production or reduce capacities to minimum volumes. By early 2023, demand had stabilized and prices began to increase, allowing steel producers to restart capacity gradually.
Despite the difficult situation, the German steel industry is gradually switching to the production of arc steel without electricity. In January 2022, the share of steel produced in electric arc furnaces reached 10.99 million tons (29.8%).
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