Output drop predicted for German mills

Output drop predicted for German mills

German steel mills are expected to experience a drop of about 4% in output in comparison to 2001 which saw a higher volume. As a result, experts say mixed signals are being felt from consumers in Germany according to industry insiders there. According to the president of Germany's steel federation, Dieter Ameling, not only is the EU steel industry nervous about the US trade sanctions but Germany's situation remains on edge. Ameling reports that German automakers, the steel industry's largest customer, has lost some ground, yet still manages to produce on a high level. He adds that the construction and engineering sectors which account for another large chunk of steel consumption, will continue to have problems and do lower levels of business. Higher costs are a big part of the problem even though mills have successfully raised prices by 30-40 euros per ton, Ameling adds. The biggest fear for now is that if other nations jump on the same bandwagon as the US, imposing their own tariffs, then the entire industry will be in for some rougher times.