Steel consumption in the Czech Republic fell to a ten-year low

Apparent steel consumption in the Czech Republic fell to a ten-year low in the third quarter of 1.37 million tonnes, bringing nine-month consumption down 700,000 tonnes year on year to 4.4 million tonnes, Czech-Slovak steel association Steel Union said. Steel production over the nine months fell 21% to 2.64 million tons.

While output across all product categories fell over the nine-month period, long steel was hit the hardest, with production falling 27% year-on-year to 1.52 million tonnes, while flat steel and pipe production fell 3% and 9.5% respectively to 720 000 tons and 263,000 tons. Total rolled steel production decreased by 19% to 2.51 million tons. Pig iron production decreased by 20% to 2.16 million tons.

This is due to the ongoing crisis in the construction industry not only in the Czech Republic, but also in neighboring countries, especially Germany. “The situation has not been normal for several years now, so it is very difficult to predict what will happen next. The construction industry here is not okay, the situation in Germany is not okay. I don't expect a quick change for the better, but rather sometime in the middle of next year,” says Steel Union Chairman Daniel Urban.

Czech steel exports also fell in the third quarter to 842,000 tonnes, the lowest quarterly level since the 2009 crisis. Imports, however, increased slightly to 1.52 million tonnes.