German steel federation Wirtschaftsvereinigung Stahl (WV Stahl) has announced that it expects a moderate recovery of
Germany's steel
production in 2015 based on the moderate upward trend in orders mainly due to rising international orders, with domestic orders remaining weak. The German steel federation indicated that weak domestic orders are a result of the current weak investment environment in
Germany.
The German steel federation pointed out that the outlook for steel pipe
production has been clouded due to the decrease in oil prices and the termination of the South Stream project. However, the fall in oil prices will provide a significant economic boost for the German economy and the steel consuming industries in the coming period.
Meanwhile, the German Association of Automotive Industry and the German Engineering Association both predict two percent growth in 2015 for their respective industry outputs, while the German construction industry is forecast to grow by two percent. These three industries account for 75 percent of German steel demand.
The German steel federation also warned that cheap Chinese imports remain a key risk factor for the European steel market.