Germany's crude steel production remains at recession levels in 2024

he German steel industry produced 37.2 million tons of crude steel in 2024, reflecting a 5 percent increase compared to the previous year. Despite this growth, production remained below the 40-million-ton threshold for the third consecutive year, indicating continued recession-level output.

Economic indicators across the sector paint a challenging picture, with demand for steel in the domestic market remaining weak. Market supply declined for the third year in a row, reaching approximately 27 million tons, a 7 percent drop, marking a historic low. Since 2017, the German steel market has contracted by about one-third, contrasting sharply with global trends and developments in other EU industrialized nations.

Kerstin Maria Rippel, Managing Director of the German Steel Federation, emphasized the urgency of addressing the industry's challenges. She stated that the persistently low production levels and economic downturn highlight the need for immediate policy actions. According to Rippel, factors such as the influx of low-cost steel imports and high energy costs are posing significant difficulties for domestic companies. She stressed the importance of government intervention to support the industry and protect it from unfair competition. Currently, one-third of the steel used in the EU is imported from non-EU countries, and increasing energy costs, particularly network charges, have added an estimated 300 million euros in additional expenses in the past year alone.

Rippel called for decisive action from both the German government and the European Union, urging the new administration to reinstate the full 5.5 billion euro subsidy for network charges retroactively from January 1, 2025. Additionally, she advocated for stronger measures at the EU level to protect the industry from unfair trade practices.

Looking ahead, Dr. Martin Theuringer, Managing Director and Chief Economist at the German Steel Federation, does not foresee a significant economic recovery in the near term. He cited weak investment demand in Germany and external economic uncertainties, such as trade policies in the United States and economic conditions in China, as key concerns. Theuringer highlighted the impact of Chinese steel imports on the domestic market and underscored the need for strategic measures to stimulate demand and enhance investment conditions.

Source: WV Stahl, Photo: Fotolia