According to statistics, Germany's crude steel production decreased by 1% y-o-y to 2.84 million tonnes in August. The decrease includes a 1.1% drop in electric arc furnace crude steel production, which reached 707,000 tonnes, marking the 18th consecutive month of decline.
The decrease in Germany's crude steel production is mainly attributed to rising energy costs and the economic slowdown. The impact of the significant decrease in crude steel production in Germany was particularly pronounced among medium-sized electric steel companies.
To address this problem, the government needs to take urgent steps to secure competitive electricity prices to alleviate energy costs for domestic steel producers. Maintaining an optimum steel price level requires an adequate supply of green electricity and appropriate backup power plants.
In the first eight months of this year, Germany's steel production totalled 24.3 million tonnes, down 4.2% y-o-y.