German Steel Federation: Concerns about German economy after worldsteel report

The World Steel Association (worldsteel) expects global demand for steel to grow slightly again in 2024 and 2025, following a decline in the market supply of rolled steel in the past two years. This forecast is based on stable development in China, a significant upturn in the steel economy in the emerging markets, particularly in India, and robust growth in demand for steel in the advanced countries. This also includes the USA, where the steel market is receiving increasing impetus from infrastructure programmes and the Inflation Reduction Act.

"Globally, the biggest challenges in the steel economy are currently in the European Union and especially in Germany," explains Dr Martin Theuringer, Chairman of the worldsteel Economic Committee and Managing Director of the German Steel Federation. Although demand for steel is also recovering in the EU, it is starting from a very low level. For Germany, worldsteel only sees a technical recovery this year, which is mainly due to the inventory cycle and will only gain momentum from 2025. But even then, demand for steel in Germany is unlikely to significantly exceed the low level of the coronavirus crisis year 2020. "The weak recovery in the EU and especially in Germany contrasts with the USA, where demand for steel is expected to increase by a total of 20 per cent between 2020 and 2025. And this is despite weak residential construction there too, but thanks to high investment in the expansion of production capacities," says Theuringer.

Kerstin Maria Rippel, Managing Director of the German Steel Federation, explains the seriousness of the situation for Germany: "Despite the global economic recovery, we are not making any progress here in Germany. This is bad news that extends far beyond our sector, as the demand for steel is an indicator of the general state of Germany as an industrial location. If we as a society want to achieve the climate targets and at the same time maintain our economic strength and resilience, we need a strong industry. And the necessary steps must be taken now to bring Germany back to the forefront as an industrial centre. This fundamentally includes finding a response, both in Germany and in the EU, to the strategic location policies that are currently making other regions of the world strong and driving them forward."

Source and Photo: WV Stahl