Following a decrease of 1.7 percent in 2012, in the first quarter this year German steel and metal processing companies saw their production decrease by 2.1 percent compared to the same period last year, according to German steel and metal industry association WSM. German metal and steel companies' exports increased by 1.5 percent in the first quarter, while sales to domestic customers were 5.2 percent lower compared to the first quarter of 2012.
Meanwhile, in the first quarter of the current year new orders for German steel and metal processing companies decreased by 4.4 percent year on year, while domestic orders showed greater stability with just a 0.3 percent year-on-year decline and new orders from abroad fell by 10.7 percent, both compared to January-March 2012.
According to WSM, the negative annual growth rates were due to the strong performance of the steel industry in the first half of the previous year, which had weakened in the second half. Compared to the fourth quarter of 2012, therefore, all performance indicators show an improvement. Although weak demand has so far continued in the euro zone, there is hope that demand may register an improvement in the remainder of the current year.