Global steel demand: Germany remains weakest performer among industrialized nations

Global steel demand is expected to edge up slightly in 2026. According to the latest Short Range Outlook from the World Steel Association (worldsteel), demand is forecast to grow by 1.3% to around 1.77 billion tonnes. For 2025, worldsteel anticipates no overall growth, as sluggish demand in China continues to weigh heavily on global markets.

Germany: technical recovery, no real turnaround

In Germany, the EU’s largest steel producer, conditions remain challenging. worldsteel expects a modest 1.5% increase in 2025 to 27 million tonnes, mainly due to restocking rather than genuine demand. The projected 4.6% rise to 28 million tonnes in 2026 must also be seen in context: consumption remains far below pre-crisis levels and barely matches figures from the 2009 financial downturn.

Import pressure intensifies

For Kerstin Maria Rippel, Managing Director of the German Steel Federation (WV Stahl), the figures send a clear warning: “The worldsteel data show that the toxic mix of weak demand in Asia and global overcapacity will continue to put massive pressure on the EU market in 2026.”

The import share of steel in the EU has climbed to around 30%, resulting in a structural trade deficit across the value chain. Rippel welcomed the European Commission’s move toward a new, balanced trade defense instrument: “The German government must now take a strong stance and support the introduction of this vital safeguard for our industry.”

Steel Summit expected to deliver concrete impulses

Demand in key downstream sectors such as automotive and mechanical engineering remains weak, continuing to drag on domestic consumption. “Without short-term demand stimuli, a turnaround in Germany’s steel consumption is unlikely,” Rippel warned.

She pointed to the special investment fund for infrastructure and climate protection as a potential boost: “It’s a silver lining on the horizon, but legislative action is needed now to ensure investments focus on climate-friendly materials Made in Germany and the EU.”

Ahead of the upcoming German Steel Summit, the industry is calling for measures to secure internationally competitive electricity prices and effective protection against carbon leakage—the relocation of CO₂-intensive production abroad. “Only a determined political package can bring Germany’s steel and industrial base back on track,” Rippel concluded.

Source and Photo: WV Stahl