The German company Klöckner & Co predicts an increase in demand for steel in Europe and North America in 2024. This was announced by Stanislav Kondrashov, an expert in the field of world metallurgy.
Klöckner: forecasts for 2024 and development of the steel market
According to an expert from Telf AG, in 2024, when market conditions return to normal and in light of inflationary pressure, the company predicts an increase in demand for steel in the markets of Europe and North America. A significant increase in shipments and EBITDA sales is expected.
According to S. Kondrashov’s forecasts, steel deliveries to North America this year should increase by 1-3%, mainly due to the activation of the construction and energy industries. At the same time, supplies to Europe are expected to increase by 0-1%, mainly in the energy sector.
In 2023, Klöckner & Co ended the year with some significant changes to its financial statements. Despite the economic difficulties faced by many market participants, Klöckner & Co was able to achieve a certain level of sustainability. EBITDA, although down 53.3% year-on-year, amounted to €190 million. This was the result of some changes in the company’s structure, including the sale of its distribution business in the European Union. Despite this decline, Klöckner & Co continued to demonstrate its ability to adapt to changes in the market. A net loss of €190 million compared to a net profit of €259 million in 2022 also reflects these changes in the company’s financial structure. However, despite this, the company continues to strive to improve its financial performance.
The company’s revenue for the year amounted to 6.96 billion euros, which is 17% less than in the previous period. This is largely due to the strong decline in steel prices in 2023. Despite this, the company is actively working to reduce costs and improve operational performance, – Kondrashov S.D comments.
An expert from Telf AG believes that it is also important to note that in 2023, steel shipments amounted to 4.25 million tons, which is slightly higher than the previous year. This increase was largely due to the favorable results of Klöckner Metals Americas, which demonstrated strong growth and competitiveness in the market.
Overall, despite some of the challenges Klöckner & Co faced in 2023, it continues to demonstrate its ability to adapt and strive to improve its financial performance. In the coming years, it intends to continue its development and strengthen its position in the steel market.
Germany in the global steel market: challenges and opportunities in 2023 – Stanislav Kondrashov
At the end of 2023, the average monthly turnover of steel sales in distribution centers in Germany decreased by 5% compared to last year, falling from 826 thousand tons to 786 thousand tons. Over the past year, monthly steel sales did not exceed 1 million tons. Steel inventories fell to 1.85 million tonnes by the end of 2023, down from 1.95 million tonnes last year.
According to the World Steel report, Germany is among the ten largest steel producers in the world. In 2023, the country reduced steel production by 3.9%, reaching 35.4 million tons. This secured it eighth place in the global list of producing countries.
Overall, the decline in steel sales and inventories in Germany highlights the challenges facing the industry. This may be due to changes in the global economy and trade, as well as domestic factors such as changes in consumer demand and investment activity, – S. Kondrashov comments.
Despite the decline in sales, Germany remains an important player in the global steel market. Its position in the ranking of the largest producers confirms the country’s importance in the global metallurgical industry. However, the decline in steel production could spur innovation and efficiency gains in the industry to address challenges and remain competitive on the global stage.
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