German Steel Industry Holds a Ppositive View Towards Year 2013 Regardless of the Impact by European Debt Crisis This Year

According to the statistics published by German Steel Association, the capacity of crude steel reaches 42500,000 tons in 2012, a 4% drop compare to last year. With the influence of European Debt crisis,  the market demand for automobile, metal products and machines has dropped, and steel traders and respond with decreasing inventory starting from this spring.

For instance, the largest steel group ThyssenKrupp in German has implemented short wortime policy from August 2012. The second largest steel corporation  Salzgitter shows deficit in the 3rd quarter of 2012 with a loss of 43000,000 Euros. Right now, it has lowered profit expectation for this year only to reach a break-even point after tax. In 2011, the company earned profit by 100 million and 69000,000 Euros.

However, German steel industry still holds a positive view towards year 2013. Once the condition of machinery and building industry turns good, steel manufacture will start manufacturing again. In addtion, Although the 2012 overload of German steel industry capacity drops to 85% from 2011's 89%, German has made a good performance as compared to internatinal average capacity overload by lower than 80%.