ESSEN, Germany, Oct 20 — A forecast downturn for the steel industry is expected to hit German producers particularly hard, according to forecasts from the World Steel Association released on Thursday.
Steel production in Germany is forecast to drop by 10 per cent to 29.2 million tons in 2023, while overall production in the European Union (EU) is forecast to drop by 5.1 per cent, reported dpa news.
Germany occupies a "worrying special position" in the global steel industry, Martin Theuringer, chief economist for the German Steel Association (WV Stahl), said on Thursday.
He cited high energy prices and rising interest rates as the main reasons for the decline. The slump in Germany contrasted with relatively stable demand in other regions outside Europe, Theuringer added.
The forecast would put total steel output in Germany below 30 million tons for the first time since 2009, in the aftermath of the global financial crisis. By comparison, production volume in 2022 was 32.1 million tons, according to WV Stahl.
The industry lobby group renewed its call for the German government to subsidise energy prices to ease the burden on energy-intensive industries like steel.
"Next year, steel demand will remain at a low level with a volume of around 32 million tons," he explained.
— Bernama-dpa
