Germany's steel production down by double digits in H1

ISTANBUL

Germany's crude steel production declined by double digits in the first half of the year due to the ongoing economic weakness, and "massive" import pressure, according to data from German Steel Association released on Friday.

In the January-June period, Europe's largest economy's crude steel production dropped 12% year-on-year to 17.1 million tons.

"The ongoing economic weakness, combined with massive import pressure, is continuing to impact the steel industry in Germany," the association said in a statement.

The situation in the industry therefore, remains extremely tense, it added.

"The production slump in our industry demonstrates how dramatic the situation is for Germany as an industrial location. Crude steel production is at the level seen during the financial market crisis in 2009," said Kerstin Maria Rippel, managing director of the German Steel Association.

He explained that steel companies are suffering particularly from weak domestic demand from key customer sectors such as construction, mechanical engineering, and the automotive industry.

"What we need now is a steel summit as a top-level meeting at the highest political level with our industry. The Chancellor, Vice Chancellor, and Federal Council are absolutely right on this – and we are ready," Rippel said.

High energy costs, in particular, continue to place a massive strain on the competitiveness of steel companies, according to the statement.