According to a report by the RWI Leibniz Institute for Economic Research (RWI), a German research and policy advice center, Germany’s steel production in 2019 is likely to decline for the second consecutive year.
According to RWI, in 2019 the domestic demand for steel in Germany is expected to fall by 1.8 percent year on year, which will result in the decline of raw and rolled steel production in the country. Capacity utilization at German steel mills is expected to continue to decline as well, though remaining high compared to international standards, at 84 percent. Globally, steel production is estimated to increase this year by 1.8 percent, after rising by 4.7 percent last year, leaving the global excess capacity problem unresolved.
RIW states that the economic conditions for the German steel industry are currently unfavorable due to the problems in the automotive industry and rising protectionism in international markets. Accordingly, it is estimated that German rolled steel production will decline by 1.4 percent in 2019, while German crude steel production is likely to fall by 1.7 percent.
RWI chief economist Roland Döhrn stated that, despite unfavorable market conditions, the German steel industry has performed well. On the other hand, falling production might cause a decrease in employment, said Döhrn.