The low water level in the Rhine puts pressure on the logistics of the German steel industry, as thyssenkrupp regulates pig iron production
The low water level in the Rhine River is beginning to affect the logistics of steel production in Germany after navigable depths decreased due to the summer heat and low rainfall, which forced barges to go partially loaded, and some participants in the supply chain began to transfer transportation to road transport.
The Rhine is one of the most important industrial transport arteries in Europe, connecting the ports of the North Sea with the inland production areas of Germany. In Kauba, the most important hub on the Middle Rhine for inland navigation, the navigable water depth recently dropped to about 55 centimeters on July 17, and in July it reached 70 centimeters at the current level of 22.
For the German steel industry, the immediate pressure point is not finished steel demand, but also the movement of raw materials in large volumes to integrated production sites, especially those connected to the Rhine system.
"The ongoing and deteriorating situation with low water levels on the Rhine is currently affecting the supply of raw materials to the thyssenkrupp Steel plant in Duisburg," the report said. A representative of thyssenkrupp Steel informed S&P Energy about this on July 21. "Our own fleet of pusher barges has been decommissioned due to low water levels."
The company said it was using externally chartered vessels that were secured as a precaution and could continue to operate due to their lower draft. "In addition, thyssenkrupp Steel has taken a number of measures to limit the impact on production as much as possible. However, the current development leads to restrictions in the supply of raw materials. Therefore, we have already adjusted the production of cast iron accordingly," said a company representative.
"There is currently no threat to consumer supplies. The further development of the situation and its impact on supplies and production are constantly being assessed by our special low-water working group," thyssenkrupp Steel added.
The Duisburg plant is one of the largest steelmaking centers in Europe and is heavily dependent on stable steel supplies.prices of raw materials such as iron ore, coal, and other bulk materials.
Steel distributors and processors said that so far the consequences could be dealt with, although in some regions the cost of transportation was rising.
"Of course, the water level in the Rhine has a certain effect. But this happens every year," said a source at the German service center. "We carry out deliveries to the north by ships and barges, but now we have to use trucks, which somewhat affects the cost."
German Association