FRANKFURT, Nov 11, 2011 (Dow Jones) -- German 2011 raw steel production will likely be below the industry's previous forecast of 45.5 million tons, the German Steel Federation said Friday, with order intake muted due to economic uncertainty as steel traders and processors seek to reduce their inventories.
This development is set to continue against a weak economic backdrop, so fourth-quarter order intake will likely also be muted.
Raw steel production amounted to 3.69 million metric tons in October, around 1% higher than a year earlier but 4% lower than September, the Federation said. January-October volumes are equivalent to full-year production of 45.4 million tons.
Rolled steel order intake was 2.8 million tons in September, some 6% lower than a year earlier. Third-quarter intake of 8.8 million tons was similar to a year earlier.
Order book volume stood at 7.8 million tons by the end of September, below the 8.4 million tons seen at the end of the second quarter but 8% higher than a year earlier, the federation noted.