Rolled steel product orders in Germany double in Q1 2010

In the first quarter of 2010, rolled steel product orders in Germany improved by 23.29 percent quarter on quarter and doubled as compared to the first quarter of the previous year, reaching 10.55 million metric tons, according to a report released by the German steel federation Wirtschaftsvereinigung Stahl (WV Stahl) The strongest level of received orders were registered in spring of 2008, with 12.7 million metric tons.
 
In the first three months of this year, both domestic and foreign demand increased, as compared to the previous quarters. Since the orders received recovered more rapidly as compared to supplies, order books noticeably improved from earlier levels.
 
The increase in the received orders was partially due to stock purchases of dealers and processing plants, while the increase was also linked to price trends in the raw material market.
 
According to the WV Stahl, despite the improvement in orders, the outlook remains very cautious in the light of current developments in the raw materials market. The sudden surge in particular in iron ore prices, coupled with shorter-term contracts represent a significant burden for the steel-based industrial value chains, since its effects on the economic situation is not clear yet.