Crude steel production by German mills in 2024 was 5% higher than the year before, totalling 37.2 million tonnes, according to national steel federation WV Stahl.
Still, the overall production activity in Germany remains broadly in recession mode, WV Stahl notes, as output has been lower than 40mt for three years in a row. Other economic data contribute to a gloomy picture, Kallanish hears from the federation. Demand remains at a critically low level, and market supply has hit a historic low with an annual total of 27mt of finished products, 7% less than 2023.
Since 2017, the German market lost one-third of its previous volume, in contrast to overseas economies and other industrial EU nations, WV Stahl points out. With a view on the upcoming governmental elections, managing director Kerstin Maria Rippel calls on policy-makers to take measures to lead Germany back to strength as an industrial powerhouse.
The country hurts especially from the combination of low-priced imports and uncompetitive costs for electricity, Rippel says. The grid fees alone last year imposed extra costs of €300 million ($313m) for steelmakers. With US President Donald Trump taking office, Germany and the EU can no longer hide behind the argument of World Trade Organisation compatibility, she says.
In detail, crude steel production on the oxygen-route rose by 3.3% to 26.4mt, whilst EAF production went up by 10.2% to 10.8mt. The EAF-route increase is stronger, as 2023 was affected by an unusual temporary peaking of power prices, which lead to reduced activity.
That same effect can be seen in the figures for December 2024, when EAF production fell 3.1% year-on-year. Germany’s power supply was again affected by peaking prices due to a shortfall in renewable energy last month and again this month.
Christian Koehl Germany