German crude steel production to increase 30 percent in 2010

Friday, 18 June 2010 18:05:04 (GMT+2)

In 2010, German crude steel output is expected to rise 30 percent year on year and to reach 43 million metric tons, said German steel federation Wirtschaftsvereinigung Stahl's (WV Stahl) president Hans Jürgen Kerkhoff.

Mr. Kerkhoff said that the economic conditions have improved in important areas. The inventory levels at distributors and processors are at an acceptable level and imports declined significantly. According to the WV Stahl president, the first positive momentum was seen in the automotive industry and it improved the order situation in steel-using industries such as mechanical engineering and steel tube production.
 
"The German customers of the steel industry will benefit from the weak euro and the dynamic global steel demand to a greater extent than in other EU countries," said Kerkhoff.

However, Mr. Kerkhoff warned that the improved capacity utilization and order situation in the steel industry prematurely proclaims the end of the crisis. According to the federation president, the economic situation is still unstable and the uncertainty regarding the second half of the year is extraordinarily high, primarily due to price hikes in the commodity markets and the shortened duration of contracts. Kerkhoff said that the capacity utilization levels may decrease in the second half of this year.

 previous article  /  next article