The German steel federation Wirtschaftsvereinigung Stahl has cast doubt on its forecast for domestic steel output growth of almost four percent in 2011, saying the cooling business cycle is weighing on orders.
Mr. Hans Juergen Kerkhoff, president of Wirtschaftsvereinigung Stahl, said, "In the last few weeks the economic prospects have been dampened. The German steel industry is not immune to that."
Mr. Kerkhoff said that Wirtschaftsvereinigung Stahl's outlook so far for German steel production of 45.5 million metric tons remains within reach but is now at risk He added that last year's output of 43.8 million metric tons would be reached. There are signs that the slowdown will be temporary and can be overcome in the course of 2012, he said.
ThyssenKrupp and Salzgitter, Germany's biggest steelmakers, have already started curtailing their production. The industry in Europe is suffering from weaker demand and destocking by their customers, forcing some to idle blast furnaces in order to shore up prices.
Nevertheless, the World Steel Association struck an optimistic note on Wednesday, raising its 2011 and 2012 forecast for global steel demand, driven by China.