Thyssenkrupp reported on August 13 that low water levels in the Rhine had little effect on the operation of blast furnaces at its steel plant in Duisburg, although the German steel company is closely monitoring the situation, as weak shipping continues to complicate the logistics of raw materials in the domestic market.
The navigable depth of the Rhine, a key transport artery for European industry, has decreased due to prolonged heat and limited rainfall. Low water levels have forced barges to carry less cargo and prompted some participants in the supply chain to consider alternative modes of transport, including road transport.
Duisburg is one of the largest steelmaking centers in Europe and is heavily dependent on stable logistics for the supply of raw materials such as iron ore, coal and other bulk materials.
Speaking at Thyssenkrupp's second-quarter profit and loss report press conference on August 13, Chief Financial Officer Axel Hamann said the company had not noticed a significant impact on the operation of the blast furnaces in Duisburg. Remarks
ZThe comments followed Thyssenkrupp's announcement on July 22 that the company was partially suspending the delivery of raw materials to the plant on its own barges and would instead charter private vessels that could continue operating in shallower waters.
"We have set up a special working group in the steel division to monitor[the water level in the Rhine]," Hamann said during a telephone conversation. "We have several options in order to adjust our production and the operating mode of our enterprises to some extent, so that we can work longer with existing stocks."
Hamann said Thyssenkrupp is also exploring possible road transportation options. He said that supplies to customers are not currently under threat, but warned that "if the situation really worsens and supplies stop, we cannot rule out that this will affect our results."
The water level in the Kaub bottleneck on the Middle Rhine was about 12 cm by the end of the day on August 12, and the German Water Resources Authority WSV predicts that starting on August 15, the level will fall below 10 cm.
Marine vesselsRhine is not legally required to transport cargo when the water level drops below 80 cm, while 40 cm is usually considered the threshold for a complete stop of barge traffic. A small number of modern light barges can still sail at shallower depths with minimal cargo, but only a few vessels can overcome key points in such conditions. On August 12, the company
Platts, a member of S&P Global Energy, estimated the production of hot-rolled coils in the domestic market in Northern Europe