Austria Steel Production Rises 11.3% in July Amid Year-to-Date Decline

Austria recorded an 11.3% month-on-month increase in steel production in July 2025, reaching 658,000 tons. However, production was still down 1.6% compared to July 2024. Despite the short-term rebound, Austrian steel production fell by 3.7% in the first seven months of 2025, totaling 4.31 million tons. This reflects ongoing market volatility and rising energy costs impacting Europe’s steel sector.

Voestalpine Faces Cost Pressures as Austria Steel Production Trends Shift

The country’s leading steel producer, voestalpine AG, continues to face severe challenges due to high electricity prices. CEO Herbert Eibensteiner stressed that uncompetitive energy costs are driving European buyers to lower-cost suppliers outside the region. Voestalpine has urged the Austrian government to revive compensation mechanisms for energy-intensive industries.

Meanwhile, the slowdown in production decline—from 7.1% in Q1 to 3.7% by July—suggests a slight market stabilization. Austria currently ranks 21st globally in steel output, according to WorldSteel data. Two major plants—Voestalpine Stahl Linz and Voestalpine Stahl Donawitz—account for most of the country’s production capacity.

Austria’s Performance Reflects Broader EU Steel Market Trends

Austria’s output trends mirror the European steel sector’s broader decline. EU producers collectively cut production by 7% year-on-year in July, down to 10.2 million tons. From January to July, the EU’s total production dropped 3.8% year-on-year to 75.6 million tons. Steelmakers across the region are under pressure from weak demand and unsustainable energy prices.

In 2024, Austria produced 7.1 million tons of steel, maintaining its 23rd-place ranking globally. That figure was on par with 2023, indicating persistent stagnation. Given the challenges, Austria’s July increase may signal short-term relief, but structural issues remain unresolved.

SuperMetalPrice Commentary:

Austria’s July rebound in steel production offers a brief uptick in an otherwise troubled European steel landscape. Voestalpine’s appeal for policy support highlights how energy pricing is now a critical competitive factor. Without regulatory action, domestic producers may lose further ground to lower-cost regions. As the EU weighs industrial decarbonization against economic sustainability, Austria’s situation is a key case to watch.