Germany’s crude steel output increased by 6.7pc to 3mn mt in September from 2.8mn mt in the prior month, according to the World Steel Association (worldsteel) data released on Oct 24.

 

The country’s crude steel production remained 9.7pc below 3.3mn mt recorded in the same month last year, though output has recovered faster than most other major European countries. 

 

The recovery in steel demand was at first driven by robust domestic construction activity, though more recently local passenger car manufacturing has rebounded sharply.

 

German car production jumped 81.8pc to 369,300 units in September compared with 203,1000 units in the prior month.

 

That said, the country’s construction PMI declined to 45.5 last month from a reading of 48 in August as data suggested a fall in steel-intensive commercial and civil engineering projects.

 

Local crude steel output has fallen 15.7pc to a total of 25.7mn mt through the first nine months of 2020 compared with 30.5mn mt during the same period last year. Meanwhile, pig iron production has declined by 18.3pc to a total of 16.1mn mt between January and September 2020 compared with 19.7mn mt through the first three quarters in 2019.

 

Looking forward, a sharp increase in local COVID-19 cases could hinder domestic vehicle production rates as consumers become more reluctant to purchase new cars.

 

Investments in steel-intensive construction and civil engineering projects will likely be deferred until some degree of economic stability returns to the country.

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