According to data released by the German Steel Federation WV Stahl on March 22, unfavorable weather conditions affected steel production in Germany in February, reducing its production by 10% on an annualized basis.
The fall to 3.1 million tonnes in February put an end to continuous production growth following an increase in production at German facilities following a rebound in steel demand in mid-2020.
The Steel Federation said the recovery in steel production in Germany remains fragile.
The decline in steel production was observed both in blast furnace production and in the production of electric arc furnaces. Blast furnace production fell 9.9% year on year to 2.1 million tonnes, while electric furnace production fell 11.3% to 991,000 tonnes. Pig iron production fell 8.4% to 1.9 million tonnes.
German factories were hit hard by unfavorable weather conditions in February when Germany's second largest steel company, Salzgitter announced about force majeure.
European factories are currently in August as they try to meet demand. The delivery time for the European market usually does not exceed 10 weeks.
Continuous material shortages have boosted steel prices in Europe, with Platts' valuation of hot rolled close to a record € 795 /tonne EXW, down € 5 /tonne below its June 2008 record.