In February 2023, Germany’s crude steel production decreased by 6.9% compared to the same month in 2022 and increased by 2.3% compared to January 2023, reaching 2.994 million tonnes, according to WV Stahl, the German Steel Association.

In February 2023, the volume of steel smelting from transformers reached 2.04 million tonnes, which is 4.9% less year-on-year and 4% less than month-on-month, and in electric arc furnaces 950 thousand tonnes, a decrease of -10.8% year-on-year and an increase of 19.9% month-on-month.

Steel production in arc furnaces is gradually increasing amid the return of energy, which was suspended in the second half of last year due to the high cost of electricity.

Cast iron production in Germany decreased in February 2023 by 1.1% compared to February 2022 and by 0.05% compared to January 2023 to reach 1.96 million tonnes.

Hot rolled product production for February decreased by 6.7% year-on-year and increased by 2.6% compared to January 2023 to 2.63 million tonnes.

The sharp rise in energy prices due to the Russo-Ukrainian war had a negative impact on Germany’s steel industry as the electricity and gas cost rose sharply for all EU countries at a time when steel demand collapsed, leading to producers reducing production or stopping capacities to a minimum.

In early 2023, demand stabilized, and the prices began to rise, allowing steelmakers to restart capacity gradually.

Moreover, despite the difficult situation, the German steel industry is gradually switching to electric arc steel production.

In 2022, the share of steel produced from electric arc furnaces was 29.8% or 10.99 million tonnes.

Germany was among the ten largest steel producers in the world in 2022. However, its steel production declined by 8.4% compared to 2021, reaching 36.8 million tonnes, ranking seventh in the global ranking of steel-producing countries.