For the fourth time in a row, German steel production remained below the 40 million tons mark, which is considered the minimum threshold for economically viable capacity utilization. Since 2018, production has fallen below this threshold a total of six times. The industry thus remains clearly at recessionary levels.

Demand for steel at a historic low in 2025

Demand for steel in Germany was also extremely weak in 2025. According to preliminary data up to October, the market supply projected for the year as a whole was around 30 million tons. This means that demand once again remained below the already low average of the past four years.

For Kerstin Maria Rippel, Managing Director of the German Steel Federation, the slump in production and demand is an expression of far-reaching structural problems:

"A lot of things are currently coming together for the industry: historically weak demand, unchecked growth in import pressure and internationally uncompetitive energy prices. Although the German government and the EU Commission finally began to take countermeasures last year, nothing has been implemented yet. Pressure and speed must be kept up here - especially in view of the worsening geopolitical situation. The year 2026 must be the year of securing the location!"

Import pressure on the EU steel market continues to increase

The industry is particularly critical of developments in foreign steel trade. Around one in three tons of steel used in the EU now comes from outside the EU. Global overcapacity, particularly in Asia, and an increasingly aggressive and unpredictable US customs policy are further exacerbating the situation.

"Under these conditions, the steel industry will hardly be able to recover in 2026," warns Rippel. "In order to limit import pressure on the European market, the EU Commission's good proposal for a highly effective protection instrument must now be implemented quickly and consistently. The industry cannot afford any further delay."

Energy costs remain a key location issue for the steel industry

In view of the ongoing crisis, the head of the association sees a clear political mandate for action:

"The Chancellor's Steel Summit and the SME Summit at the end of last year showed that the challenges have been recognized. Now we need to turn this into concrete regulatory implementation measures."

In addition to effective foreign trade protection, the issue of energy costs remains central. "The current uncompetitive electricity prices are a major burden and at the same time a key obstacle to the entire steel industry's transition to climate neutrality," emphasizes Rippel. She expressly welcomes the ongoing efforts of the German government. At the same time, she formulates a clear goal: "However, the medium-term goal must be an internationally competitive electricity price for the industry of 3 to 6 cents per kilowatt hour - all in, i.e. including grid fees, levies and charges."

It cites the permanent reduction in grid fees, the unrestricted continuation of electricity price compensation and the possibility of combining the industrial electricity price and electricity price compensation as key steps on the way to achieving this.

Low-emission steel "Made in EU" as an economic stimulus

The German Steel Federation sees the targeted development of lead markets for low-emission steel made in the EU as a key opportunity for the future. At national level, the decisive lever lies in the current reform of public procurement law.

"The use of increasingly low-emission raw materials must be made mandatory for public investments. The reform of public procurement law at national level must create the necessary framework for this. In order to strengthen the demand for climate-friendly steel in a targeted manner and trigger effective economic stimuli, we also need EU content rules, which must be defined in Brussels," explains Rippel.

From the industry's perspective, the currently expected Industrial Accelerator Act offers a decisive opportunity to specifically stimulate demand in steel-using industries:

"Because lead markets are created where low-emission steel is reliably purchased."

Steel production 2025: key figures at a glance

Total crude steel: 34,090 thousand tons (-8.6% compared to the same period of the previous year)

Oxygen steel: 23,645 thousand tons (-10.7%)

Electrical steel: 10,445 thousand tons (-3.5 %)

Pig iron: 21,872 thousand tons (-10.1 %)

Hot-rolled steel products: 29,760 thousand tons (-5.5%)

The figures illustrate the depth of the structural crisis in the German steel industry. After four consecutive years of crisis, the focus of the German Steel Federation is now clearly on 2026 as a decisive year for securing the location, competitiveness and transformation of the industry.