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German Steel |
German Steel Output Falls for Sixth Consecutive Month
Germany steel production decline in June 2025 signals a deepening industrial crisis. Steelmakers cut output by 15.4% year-on-year, producing only 2.68 million tonnes. Compared to May 2025, production dropped 9.2%. According to WVStahl, this marks the sixth straight month of annual decline, echoing levels last seen during the 2009 financial crisis.
The breakdown reveals a sharper downturn in basic oxygen furnace (BOF) production, which fell 20% y/y to 1.74 million tonnes. Electric arc furnace (EAF) production dropped by 7.2% y/y, totaling 941,000 tonnes. Meanwhile, pig iron production plummeted 18.8% y/y to 1.63 million tonnes. These reductions reflect both structural and cyclical pressures on Germany’s steelmaking capacity.
Weak Demand and High Energy Prices Exacerbate the Downturn
Steelmakers blame weak demand from construction, machinery, and automotive sectors. Kerstin Maria Rippel, CEO of WVStahl, emphasized the severity of the situation, urging political intervention. “We urgently need a steel summit,” she said, calling for a dialogue between industry leaders and top government officials, including the Chancellor.
High energy prices remain a persistent threat. Germany’s energy-intensive steel sector faces increasing global competition, especially from Asia. Rippel stressed the need for long-term electricity price stability. Without intervention, Germany risks long-term deindustrialization in critical value chains such as green infrastructure and auto manufacturing.
2025 Output Data Reflects Systemic Challenges
For January–June 2025, Germany’s steel production declined by 11.6% y/y to 17.11 million tonnes. BOF steel fell 15.1% to 11.44 million tonnes, while EAF production decreased 3.6% to 5.67 million tonnes. Pig iron output dropped 14.5% to 10.64 million tonnes. Hot-rolled steel volumes reached 15.28 million tonnes, down 8.6% from the previous year.
In contrast, full-year 2024 showed modest gains, with total steel output rising 5.2% to 37.23 million tonnes. However, WVStahl notes that volumes have remained below 40 million tonnes for three consecutive years. This confirms a prolonged stagnation phase for Germany’s steel industry despite cyclical rebounds.
ScrapInsight Commentary
Germany’s steel production decline signals more than just a cyclical low; it reflects deeper structural risks. High input costs and regulatory uncertainty undermine long-term investment. Without policy reform, the competitiveness of EU steel in the global market will erode, weakening the region's circular economy ambitions.