Stahl-Holding-Saar predicts 'toughest times' for its steel mills in Germany

Stahl-Holding-Saar, the German parent company of steel mills Dillinger and Saarstahl, is facing "the toughest time" in the company's history, driven by a growing scrap shortage and expected rising production costs, CEO-elect Stefan Rauber said on May 26. He will take over as CEO from Karl-Ulrich Kohler on July 7.

Responding to a call to announce a change in the leadership of the supervisory board, the company said the energy transition and shift to less carbon-intensive steel will be an unprecedented 10-year challenge.

When asked by S&P Global Commodity Insights if the company expects a scrap shortage as more European steel mills shift to more intensive production using scrap metal in electric arc furnaces, Rauber said he is already facing material and scrap shortages. , and the shortage will be even more intense in the future.

Asked if he also expects a shortage of green or low carbon steel, he said the market is very small in terms of tonnage.