German steel company thyssenkrupp is cutting production due to low water levels in the Rhine, which disrupts supplies of materials
German steel producer thyssenkrupp Steel faced restrictions in the supply of raw materials to its site in Duisburg due to low water levels in the Rhine River and, as a result, reduced pig iron production, a representative of the steel company told Fastmarkets on Thursday, July 16.
The recent heat wave in Western Europe has led to a decrease in the water level in the Rhine, which has affected inland waterway transport and increased logistics costs, according to market participants and the media.
"The ongoing and deteriorating low water situation on the Rhine is currently affecting the supply of raw materials to thyssenkrupp's Duisburg plant," the company said in a statement on Thursday.
According to the steel producer, supply disruptions forced it to adjust its pig iron production.
"The current changes lead to restrictions in the supply of raw materials. Therefore, we have adjusted our pig iron production accordingly," thyssenkrupp told Fastmarkets, adding that there is currently no threat to supplies.
Thyssenkrupp announced that its own fleet of pusher barges had been decommissioned due to low water levels and that it was currently using externally chartered vessels that were protected as a precautionary measure. They may continue to operate due to the lower depth of precipitation.
The company said that the development of the situation and its impact on supplies and production is being monitored by a special working group on low water.
Fastmarkets contacted thyssenkrupp Steel with a request about changes in the volume of raw materials supplies, the expected decline in steel production and the likely consequences of increased logistics costs for steel prices, but had not received a response at the time of publication.
The reported supply disruptions came just weeks after the steel mill resumed trial operation of its hot rolling mill 4 (HSM4) in Duisburg in early June, following repairs expected to occur in October 2025.
According to Fastmarkets, the installed capacity of Thyssenkrupp's hot-rolled tape plant in Bruckhausen is 3 million tons per year.
The design production capacity of the four blast furnaces at the Duisburg plant is about 11.7 million tons of pig iron per year and about 11 million tons of steel per year, although, according to the company, shipments from metallurgical assets have remained below design capacity in recent years.
Market reaction, HRC trends
A source familiar with the situation told Fastmarkets on Thursday that there was no immediate risk of production shutdowns at the Duisburg plant, and that production had only been reduced for a while.
The source said that the steelmaker could "use this narrative" to support price increases, but added: "Of course, if