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Try the Free AI Search EngineGerman Steel Sector Poised for Growth: Policy Support & Plant Activity Signal Positive Outlook
Germany’s steel industry faces increasing import pressure but is poised for growth. The German Federal Council is advocating for measures that may support the sector. This push aligns with generally increased plant activity. The news article “Germany urges swift action on Steel and Metals Action Plan to safeguard industry” highlights the need for urgent action regarding import pressure, global overcapacity and low domestic demand.
Overall, German steel plant activity witnessed fluctuations. The mean activity level peaked in May at 36.0%, before decreasing to 25.0% by July.
AG der Dillinger Hüttenwerke Dillingen steel plant in Saarland, an integrated BF-BOF producer with a crude steel capacity of 2.76 million tonnes per annum, showed consistently higher activity than the national mean. Activity peaked in April at 40.0%, before decreasing to 29.0% in July. No direct connection could be established between observed activity changes at this plant and the named news articles.
ArcelorMittal Hamburg steel plant, operating a DRI-EAF based production route with a crude steel capacity of 1.1 million tonnes, displayed relatively stable activity levels, gradually increasing from 23.0% in February to 28.0% in July. No direct connection could be established between observed activity changes at this plant and the named news articles.
Salzgitter Flachstahl steel plant in Lower Saxony, another integrated BF-BOF producer with a substantial 5.2 million tonnes crude steel capacity, exhibited a declining activity trend from January to July, falling from 24.0% to 12.0%. The news articles “Germany urges swift action on Steel and Metals Action Plan to safeguard industry” and “Germany calls for immediate action on Steel and Metals Action Plan to Protect Industry” reference the need for competitive electricity prices to support electric arc furnace steelmaking, however no such support actions have been implemented. The plant’s planned transition to hydrogen-based steel production may require adjustments to production output in the short term.
The support of ESMAP called for by the German Federal Council in the news article “Germany calls for immediate action on Steel and Metals Action Plan to Protect Industry” is not yet reflected in increased production activity as the average steel production rate has dropped from a high of 36% in May to 25% in July. Considering the call to action from the German Federal Council and the German Steel Federation, procurement professionals should closely monitor policy developments. Given the drop in activity at Salzgitter Flachstahl, diversification of suppliers in flat steel products is advised to mitigate potential short-term supply risks.