Germany’s 2012 crude steel output to remain stable at 2011 level

Thursday, 12 January 2012 17:04:31 (GMT+2)

Germany's crude steel output will probably remain almost flat this year as the euro zone debt crisis starts to affect the economy of Europe's largest steel producing country, and due to the risk of rising raw material prices, a German steel industry body has said, as reported by Reuters.

The German Steel Federation (Wirtschaftsvereinigung Stahl) said German crude steel production last year rose one percent to 44.3 million mt, affected by a summer dip in demand that deepened into a second-half slump that forced capacity cuts in steel mills.

"We expect crude steel production in 2012 at around 44 million mt. The production will substantially remain stable," German Steel Federation president Hans Juergen Kerkhoff said in a statement on January 10.

Mr. Juergen said demand would be supported by major end-clients, such as the automotive and engineering sectors, and that the construction segment was expected to grow further this year.
However, he warned that raw material costs pose a downside risk despite recent slight price reductions for iron ore and coking coal, key inputs in steelmaking.

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