Steel production in Germany dipped notably in 2025, according to the national steel federation, WV Stahl in its yearly review.
Crude steel output at German mills came to 34.1 million tonnes last year, which was 9% below an already weak year in 2024. A similarly low level was seen only in the year of the global financial crisis of 2009.
The capacity utilisation has now fallen below 70%, which is a critical mark for the energy-intensive steel production, according to WV Stahl.
The year-on-year dip was stronger for oxygen-route crude steel, which fell by 10.7% to 23.6m tonnes. The EAF-route production fell by 3.5% to 10.5m tonnes. In December, the y-on-y gap levelled out at only a 0.2% decline compared with December 2024, to 2.7m tonnes.
This marks the fourth year that crude steel production in Germany has been below 40m tonnes, which is seen as the threshold of profitable nationwide steel output, Kallanish understands.
Steel demand in Germany has declined, too. According to preliminary data, the extrapolated market supply of 30m tonnes is again below the already low average of the past four years, the federation notes.
WV Stahl finds the development in foreign trade of steel particularly alarming. Global overcapacity – particularly in Asia – and the increasingly aggressive and unpredictable US customs policies are further exacerbating the situation, it says.
“Under these conditions, the steel industry will hardly be able to recover in 2026,” warns WV Stahl’s managing director, Kerstin Maria Rippel.
“In order to limit import pressure on the European market, the EU Commission’s sound proposal for a highly effective protective instrument must now be implemented swiftly. The industry cannot afford any further delays,” she concludes.
