Germany Steel Production Decline in 2025

Germany’s Steel Production Declines by 15.4% in June 2025

Germany’s steel production fell 15.4% year-on-year in June 2025, marking the sixth consecutive month of annual declines. The German Steel Industry Association (WVStahl) reported production at 2.68 million tonnes, down 9.2% from May. Oxygen furnace output dropped 20% y/y to 1.74 million tonnes, while electric arc furnace production fell 7.2% y/y to 941,000 tonnes. This continued slump signals mounting pressures on Germany’s steel sector.

The decline reflects weak domestic demand from key industries, including construction, automotive, and machine building. Pig iron production also decreased by 18.8% year-on-year to 1.63 million tonnes. Hot-rolled steel output shrank by 10% y/y, highlighting broad weakness across product categories. WVStahl CEO Kerstin Maria Rippel called for urgent political dialogue to address the crisis, emphasizing a steel summit with government leaders.

Impact of Energy Prices and Industry Outlook

High energy prices severely impact German steelmakers’ competitiveness, contributing to production cuts. WVStahl urges policymakers to ensure stable, affordable electricity for energy-intensive industries. The steel sector’s contraction now mirrors the 2009 financial crisis levels, signaling a deep industrial downturn.

Despite a 5.2% increase in total steel production in 2024, Germany’s annual output remains below 40 million tonnes for the third year running. This sustained low volume underlines structural challenges facing Europe’s largest steel producer amid global economic headwinds.

SuperMetalPrice Commentary:

Germany’s steel production drop exemplifies broader European industrial pressures from energy costs and slowing demand. Policymakers must act swiftly to stabilize energy markets and support steelmakers. Without intervention, competitiveness will erode further, risking supply chain disruptions in critical sectors like automotive and construction. As global markets adjust, close monitoring of Germany’s steel output remains essential for commodity traders and industry stakeholders.