In 2024, the German steel industry produced a total of 37.2 million tons of crude steel. Although this represents an increase of around 5 percent compared to the previous year, production volumes have remained below the 40-million-ton mark for the third consecutive year. As a result, the industry continues to operate at a level indicative of a recession.
Other economic indicators also point to a continued downturn in the sector. In particular, demand in the German steel market remains exceptionally weak. In parallel with declining crude steel production, market supply also fell for the third consecutive year. With approximately 27 million tons, it recorded a 7 percent decline, reaching a historic low. Since 2017, the German market has lost about one-third of its volume—a dramatic drop that stands out not only in an international comparison but also within the EU.
Steel Industry Association Warns: "Politics Must Act Now"
Kerstin Maria Rippel, Chief Executive Officer of the German Steel Federation (Wirtschaftsvereinigung Stahl), issues a stark warning about the consequences of this development:
"Politics must finally move from talking to taking action. The industrial base in Germany is in trouble. And the industrial base does not care whether there is an election campaign going on."
According to Rippel, the massive increase in cheap steel imports and the persistently high, internationally uncompetitive energy costs are particularly problematic. Both factors are putting enormous pressure on German companies, with some even facing existential threats. Already, one-third of the steel consumed in the EU originates from non-EU countries. At the same time, network charges alone led to additional costs of 300 million euros for German steel producers last year.
Call for Immediate Political Action in Berlin and Brussels
"We need decisive action now in Berlin and Brussels. Specifically, the new federal government must reinstate full network charge subsidies of 5.5 billion euros within the first 100 days—and retroactively to January 1, 2025. Furthermore, Germany must take a strong stance in Brussels, making it clear that we need effective protection against unfair trade. Since Trump's presidency, no one in politics can hide behind the argument of ‘WTO compatibility’ anymore," urges the federation’s CEO.
No Improvement in Sight – Economic Risks Remain High
According to Dr. Martin Theuringer, Managing Director and Chief Economist of the German Steel Federation, there is little hope for an economic turnaround in the current year:
"Investment demand in Germany remains weak. On top of that, there are significant external economic risks, particularly regarding U.S. trade policy and the economic situation in China. Last year, cheap Chinese imports further exacerbated an already difficult situation. To revive steel demand and production in Germany, urgent new stimulus measures are needed—particularly in strengthening investment conditions."
Steel Industry Calls for Political Support to Secure Germany’s Industrial Base
Given these developments, the steel industry remains dependent on political support to offset competitive disadvantages and ensure the long-term viability of Germany’s industrial sector.
Source: Wirtschaftsvereinigung Stahl
