Steel output increased in H1

2010-08-23

In the first half of 2010 steel production in Poland grew almost twice as fast as domestic steel consumption. As a consequence, some of the output from steel mills ended up in warehouses. In H2 2010 output is expected to decline, according to estimates from the Polish Steel Association.
A total of 4.1 million tonnes of steel was produced in the first six months of this year, while apparent steel consumption (i.e. production plus imports minus exports) amounted to approximately 4.5 million tonnes. This translates into year-on-year growth of 29% and 16%, respectively. Simultaneously, however, 59% of domestic demand is satisfied by imports, which were up 14% by the end of June 2010. Exports also increased, although Poland continues to import more steel than export this product. Its final balance at the end of H1 2010 was thus negative, amounting to 736,000 tonnes of steel.
Steel producers and distributors are already reacting to the existing situation, and as a consequence, will probably cut back their operations in the coming months. This trend was reflected in the results for June this year when output dipped by 2.6% and exports by 6%.

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