Austria Steel Production Drops 14.3% in June Amid Energy Cost Pressures

Austria Steel Production Slumps in June 2025

Austria’s steel production dropped by 14.3% month-on-month in June 2025, totaling 591,000 tons. Compared to June 2024, production fell 6.6%, according to data from WorldSteel. This drop pushed Austria to 22nd in the global steel producer rankings.

From January to June 2025, Austrian steelmakers produced 3.66 million tons, down 4.9% year-on-year. However, this marks a slower decline than the 7.1% decrease reported in Q1. The moderation may signal a stabilization in production, although persistent structural issues remain.

Voestalpine AG, Austria’s largest steelmaker, has raised alarms over energy-related competitiveness challenges. CEO Herbert Eibenschneider stated that high electricity prices are pushing European customers toward cheaper suppliers, leading to lost business for domestic producers. Voestalpine is urging the government to reinstate compensation mechanisms for energy-intensive industries.

Energy Costs Undermine Competitiveness in the EU Steel Sector

High electricity costs continue to burden Austria’s steel sector. Voestalpine’s plants in Linz and Donawitz, with capacities of 6 million and 1.57 million tons respectively, struggle to stay competitive. Without government support, energy-intensive operations may become financially unsustainable.

Meanwhile, steel output across the European Union also dropped. EU steelmakers reduced production by 8.2% year-on-year in June to 10.4 million tons. For the first half of 2025, EU steel production declined 3.3% year-on-year to 65.4 million tons. These regional figures reflect a broader trend of declining output amid rising input costs and weakening demand.

Austria’s annual steel production totaled 7.1 million tons in 2024, maintaining parity with 2023. Yet its rank in global steel production has slipped in recent years, reflecting mounting headwinds. Unless cost pressures ease, Austria risks further erosion of its industrial competitiveness.

SuperMetalPrice Commentary:

Austria’s steel output decline signals deeper problems for the EU’s industrial base. High electricity prices are not just a domestic issue—they shape regional competitiveness in global markets. Without intervention, energy costs could hollow out central Europe’s steel sector. For Austria, policy support and energy pricing reform will be critical to stabilizing production and retaining market share in the global steel supply chain.