Riesa Steel Plant Signals Production Shift Amidst German Sales Rebound
Located in Saxony, Germany, and owned by Feralpi Group, the ESF Elbe Stahlwerke Feralpi Riesa plant produces semi-finished and finished rolled steel products with an annual crude steel capacity of 1.4 million tonnes, primarily serving the automotive and building/infrastructure sectors. Recent thermal activity trends suggest potential shifts in the plant’s operational focus.
Detailed Activity Observations:
From November 2024 to January 2025, activity at the Electric Arc Furnace (EAF_0) declined significantly, followed by a recovery in February and March, before leveling off in April and May. Meanwhile, the “Other (OTH_1)” category saw fluctuating activity with a general upward trend. Concurrently, activity at the Hot Rolling Mill (HRM_3) generally decreased over the observed period.
These trends coincide with broader market dynamics in Germany. While German stockholders’ sales remain modest in Q1, with flat products experiencing a decrease, long products saw a modest rise. Furthermore, Stocks: German steel sales rose 5.6% in March amid falling inventories, driven by restocking efforts, though long product sales specifically dropped.
Implications for Steel Buyers and Market Analysts:
The observed shift in thermal activity at the Riesa plant, particularly the decrease in Hot Rolling Mill (HRM_3) activity coupled with fluctuating EAF activity and increased activity in “Other (OTH_1)”, could indicate a change in product mix or operational focus. The decline in the plant’s hot rolling mill activities might affect downstream supply chains dependent on these products, especially considering the German steel market is showing modest growth but with variations across product categories. The changes must be closely monitored to anticipate potential supply bottlenecks or shifts in product availability, in combination with related market dynamics.