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| Germany steel production |
German Steel Industry Faces Continued Contraction Amidst Global Challenges
In July 2025, Germany’s steel production fell by 13.7% year-on-year, reaching 2.72 million tons. This marks the seventh consecutive month of annual declines, reflecting persistent pressures on the steel sector. According to the German Steel Industry Association (WVStahl), steelmakers increased output by 1.5% compared to June, yet overall production remains subdued due to weakening demand in key downstream industries.
Detailed Breakdown of Production Trends by Furnace Type and Product
Oxygen furnace steel production dropped 19.6% year-on-year to 1.89 million tons, though it rose 9.2% month-on-month. In contrast, electric arc furnace (EAF) output grew 4% annually to 821 thousand tons but declined 12.7% compared to June. Meanwhile, pig iron output fell 18.3% annually to 1.74 million tons but showed a 6.7% increase month-over-month. Hot-rolled steel production also declined 4.9% year-on-year, totaling 2.47 million tons in July.
Year-to-Date Decline Reflects Structural Headwinds for Germany’s Steel Market
From January to July 2025, Germany’s total steel output decreased 12.1% year-on-year to 19.83 million tons. Oxygen converters produced 13.34 million tons (-16%), and EAFs generated 6.49 million tons (-2.8%). Pig iron production declined 15% to 12.38 million tons, while rolled steel output contracted 7.8% to 17.75 million tons. Despite Germany’s status as a top ten global steel producer, these figures suggest continued market challenges and a potential recessionary phase in steel manufacturing.
ScrapInsight Commentary
Germany’s steel production decline signals ongoing demand weaknesses in Europe’s manufacturing base. Although monthly increases offer some optimism, the prolonged annual contraction may pressure prices and investment decisions. Policymakers should consider enhanced circular economy measures to stabilize raw material flows and support sustainable steelmaking in the medium term.
