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Try the Free AI Search EngineEurope Steel Market: German Production Declines Offset by Hungarian Surge, Impacting Supply Chains
In Europe, the steel market presents a mixed picture. Declining production in Germany, as highlighted by “Monthly steel production in Germany continues to fall” and “Germany reduced steel production by 13.7% y/y in July,” contrasts with potential growth in other regions. The satellite data offers limited support to these news articles.
Overall, the mean steel plant activity in Europe fluctuated, peaking in May and July. Donetsksteel Metallurgical Plant shows fluctuating, but declining activity in the last month. AG der Dillinger Hüttenwerke Dillingen steel plant experienced a notable decrease in activity from April to July, then a small increase in August. ISD Dunaferr Dunaújváros steel plant showed a steady increase in activity levels from March to August. These trends, however, lack direct correlation to broader news regarding steel production except to “Global steel production fell by 1.3% y/y in July“.
Donetsksteel Metallurgical Plant, a Ukrainian plant focusing on pig iron production using BF/EAF technologies, saw its activity drop to 12% in August, down from 18% in June. This change may reflect the broader production decrease in Ukraine, as reported in “Global steel production fell by 1.3% y/y in July” where Ukraine experienced an 18.1% y/y drop in July production.
AG der Dillinger Hüttenwerke Dillingen steel plant, a German integrated BF/BOF producer of semi-finished and finished rolled products, particularly heavy plate, saw a significant decrease in activity from 38% in April to 26% in July. This observed decrease aligns with the reported decline in German steel production in “Monthly steel production in Germany continues to fall” and “Germany reduced steel production by 13.7% y/y in July“, however, the link is only partially established as the activity increased again in August.
ISD Dunaferr Dunaújváros steel plant, a Hungarian integrated BF/BOF producer of both semi-finished and finished rolled products, including hot-rolled and cold-rolled steel, demonstrated a significant increase in activity, rising from 14% in March to 28% in August. No direct connection to news articles about Hungarian steel production can be established based on the provided information.
The decline in German production, coupled with fluctuating activity in Ukraine and increasing production in Hungary, suggests potential supply chain shifts within Europe.
Evaluated Market Implications:
Based on the news articles indicating declining German steel production and the satellite data reflecting decreased activity at AG der Dillinger Hüttenwerke, steel buyers should anticipate potential supply disruptions for heavy plate products sourced from Germany.
Recommended procurement actions:
- Diversify sourcing: Steel buyers reliant on AG der Dillinger Hüttenwerke for heavy plate should explore alternative suppliers, especially given the observed activity drop at the plant.
- Monitor Hungarian production: Given the observed increase in activity at ISD Dunaferr Dunaújváros, consider this plant as a potential alternative source for hot-rolled and cold-rolled steel, but closely monitor its production capacity and reliability.
- Assess Ukrainian supply risks: Acknowledge the inherent risks associated with sourcing from Donetsksteel Metallurgical Plant due to the ongoing conflict and recent production decreases. Evaluate alternative pig iron suppliers.