German steelmakers expect steel prices to fall in October 2022

German steel producers and traders expect lower product prices in October 2022 amid lower production costs. Eurometal reports about it with the reference to the monthly S&P Global survey.

According to a survey of producers and traders, the October price index fell by 41 points compared to 75 points in September.

Market participants expect that prices will start to recover along with demand, but there are no prospects yet. Now everyone is focused on reducing stocks, but already at the end of the year – the first quarter of 2023, a resumption of demand and production is predicted.

“There is some reduction in prices on the market. In October, energy prices are likely to be lower, so steel prices may also decline. But the real problem will be the winter season in November and December, when energy prices will rise”, the message says.

The index of producing prospects in October fell to 28 points compared to 30 points in September. This may indicate that plants will continue to operate at lower capacities.

“Let’s see how the German economy will develop. There are many factors that are driving down the general sentiment in the industry. Mills might cut production capacities to deal with low demand,” the long steel producer said.

The overall inventory index in Germany was 43 points compared to 41 points in September. The Steel Producers Stock Index stood at 50 points in October compared to 38 points in September.

As GMK Center reported earlier, German steel enterprises in August 2022 reduced steel production by 2.3% compared to the same month in 2021 – to 2.87 million tons. In January-August, steel production decreased by 4.8% compared to the same period in 2021, to 25.4 million tons.

Germany is one of the ten largest steel producers in the world. In 2021, the country increased output of steel by 12.3% compared to 2020 – up to 40.1 million tons, ranking 8th in the world ranking of producers.