2025 Annual Report on German Steel Production
The German Steel Federation (WV Stahl) has officially declared 2025 as the fourth consecutive year of crisis. Crude steel production has plummeted to a devastating 34.1 million tonnes, a 9% collapse compared to the already fragile levels of 2024. This output mirrors the dark days of the 2009 global financial crisis. With capacity utilization falling below the critical 70% threshold, the industry is no longer in a temporary recession—it is facing a threat to its very existence.
Steel Production in Germany: 2025 Final Balance
(Source: German Steel Federation, January 21, 2026)
| Category | Dec 2025 (1,000 t) | % Change (vs Dec ’24) | Jan – Dec 2025 (1,000 t) | % Change (Annual) |
| Crude Steel | 2,744 | -0.2% | 34,090 | -8.6% |
| Oxygen Steel | 2,213 | -0.9% | 23,645 | -10.7% |
| Electric Steel | 531 | +2.7% | 10,445 | -3.5% |
| Pig Iron | 1,980 | -3.1% | 21,872 | -10.1% |
| Hot-Rolled Products | 2,255 | +8.3% | 29,760 | -5.5% |
* December 2025 | ** January-December 2025
Source: German Steel Federation
Strategic Analysis and “2026 Securing Locations” Directive
1. The End of Industrial Sovereignty?
For the fourth year running, production has remained under the 40-million-tonne mark, the minimum required for a healthy industrial base. As CEO Kerstin Maria Rippel highlights, the combination of weak domestic demand (only 30 million tonnes) and aggressive imports means that one out of every three tonnes of steel used in the EU now comes from outside the bloc.
2. The Energy Price Ultimatum:
Electricity prices remain the “poison” for the sector. The industry is demanding a competitive all-inclusive industrial price of 3 to 6 cents per kWh (including taxes and network fees). Without this, the transition to “Green Steel” is financially impossible, and German sites will continue to lose out to global competitors with cheaper energy.
3. Geopolitical and Trade Defense:
With unpredictable US tariff policies and massive overcapacity in Asia, the industry is calling for the immediate implementation of a highly effective EU protection instrument. The goal is simple: ensure that European steel is not displaced by dumped products from regions with lower environmental standards.
4. Creating Lead Markets:
The future depends on “EU Content” rules and public procurement reform. Steel producers are demanding that public investments be legally bound to use low-emission, EU-made materials to trigger an economic stimulus.
Final Assessment for 2026
The 2025 report serves as a final warning. 2026 must be the year of implementation, not just dialogue. The industry requires the swift execution of measures discussed at the late-2025 summits to prevent the irreversible dismantling of the “Made in Germany” value chain. The message is clear: the steel industry cannot afford another year of delays.
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