High electricity tariffs and unpredictable conditions in the national natural gas market are forcing steelmakers in Germany to cut their steel production.
According to the national steel association WV Stahl, steel production in March 2022 amounted to approximately 3.3 million tons, which is 11.8 percent less than in the same month last year. In addition, the decline affected both steel mills, which reduced their production by 13% compared to March 2021, and mini-mills, which produced 9% less steel than the previous year.
Badische Stahlwerke said it continued to operate at half capacity in April. One of the two electric arc furnaces with a capacity of 1 million tons per year was shut down earlier this year due to rising energy costs.
Businesses such as Lech Stahlwerke, Buderus Edelstahl (Voestalpine Group), which manufactures long products from special steels, and ArcelorMittal's reduced iron (DRI) plant in Hamburg suspended production or went into operation at night and on weekends. According to ArcelorMittal, the high cost of natural gas and electricity makes the operation of this business economically unfair.
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