German Steel Buyers Revise Their Purchase Volumes
Hellenicshippingnews - Germany’s industries are starting to reopen business as normal. As steel buyers return to work, they are revising their purchase quantities, for this year, by postponing and cancelling selected orders.
The steelmakers have excess stocks as many customers are not taking delivery of material. Service centres built up inventory of strip mill products, at the start of the year, most of which is yet to be sold.
The automotive sector has been badly hit by the virus. The general industry is faring better, as is construction.
Production to fall 32% Y-o-Y
German crude steel production is forecast to decline to just 7 million tonnes, in the second quarter. This is 3 million tonnes less than the volume manufactured by domestic steelmakers in the April/June 2019 period, and equates to a decrease of 32 percent.