German steel production drops to 1963 level

German steel output will fall by 30% this year to a level last seen in 1963, sector federation WVS said on Monday even as overall industrial output posted a sharp increase.

Steel production will fall to 32 million tonnes in 2009, but regain more than 10% in 2010, WVS forecast.

In the period from January to September, orders fell by 35 percent compared with the same period in 2008, it added.

The economy ministry said meanwhile that overall German industrial output had posted a sharp rise of 2.7% in September as Europe’s biggest economy recovers from its worst post-war recession.

Slumping demand in the steel sector has begun to stabilise meanwhile, allowing the country’s leading producer ThyssenKrupp to fire up an idle furnace in the western cis have begun to rise as well, reaching 80% of capacity at present from 50% at the start of the year.

Sector giant ArcelorMittal said last week that it would put all European sites back into operation and Tata Steel of India expects to ramp up ouput at its European subsidiary Corus as well to 100 percent of capacity.