Germany increased steel production by 5.2% y/y in 2024

Production amounted to 37.23 million tons

German steel enterprises increased steel production by 5.2% in 2024 compared to 2023, up to 37.23 million tons. This was reported by the German steel association WV Stahl.

“Despite a 5% increase in steel production, production volumes remained below the 40 million tonne threshold for the third consecutive year, which corresponds to the recession level. Other economic indicators also show gloomy trends. Demand for steel in the German market remains particularly weak. Market supply in 2024 is estimated at 27 million tons, down 7% yoy and a historic low. Since 2017, the German market has shrunk by about a third, which is in sharp contrast not only to other countries but also to the industrialized EU countries,” the report said.

Steel production in oxygen converters in 2024 increased by 3.3% compared to 2023 to 26.42 million tons, and in electric arc furnaces (EAF) – by 10.2% y/y, to 10.82 million tons. Pig iron production for the year amounted to 24.33 million tons (+2.9% y/y), and hot-rolled steel production amounted to 31.61 million tons (+3% y/y).

“Politicians must finally move on from talking to action. Germany as an industrial location is doing badly. And the industrial location does not care whether there is an election campaign going on,” commented Kerstin Maria Rippel, CEO of WV Stahl.

According to her, a sharp rise in cheap steel imports and uncompetitive electricity costs threaten the existence of many companies. Currently, every third ton of steel in the EU is imported from third countries. In addition, the increase in electricity tariffs in 2024 alone cost German companies an additional €300 million.

Rippel demands urgent action from Berlin and Brussels. The new German government should fully restore €5.5 billion in subsidies for grid tariffs within the first 100 days, with a retroactive date of January 1, 2025. He also calls for a stronger position of Germany in the EU, demanding effective protection against unfair trade.

“At least since Trump took office, no one in politics can hide behind the argument of «WTO compatibility,” he emphasized.

In December 2024, German steelmakers increased steel production by 4.1% compared to December 2023, and decreased by 5.7% compared to the previous month to 2.74 million tons. In particular, the production of oxygen steel amounted to 2.29 million tons (+5.9% y/y, +13.7% m/m), and electrical steel – 516 thousand tons (-3.1% y/y, -45.6% m/m). Diversification in steelmaking methods was observed in December. Output from electric arc furnaces dropped sharply, likely due to higher electricity prices, while production from blast furnaces increased.

Pig iron production for the month increased by 5.4% y/y and 8.5% m/m – to 2.04 million tons. Hot-rolled steel production amounted to 2.09 million tons, down 7.5% y/y and 16.2% m/m.

“Investment demand in Germany remains weak. In addition, there are significant foreign trade risks, for example with regard to trade policy in the USA or the economic situation in China. Last year, cheap Chinese imports further exacerbated the already difficult situation. In order for steel demand and production in Germany to pick up again, new impulses are urgently needed in various fields, especially in strengthening investment conditions,” added Martin Theuringer, Managing Director and Chief Economist at WV Stahl.

As GMK Center reported earlier, Germany is among the ten largest steel producers in the world according to World Steel. In 2023, the country decreased steel production by 3.9% compared to 2022 to 35.4 million tons, ranking 8th in the global ranking of producing countries.

Steel production in converters decreased by 0.9% y/y – to 25.63 million tons, and in electric arc furnaces by 10.8% y/y – to 9.81 million tons. Pig iron production decreased by 0.9% y/y – to 23.63 million tons. Rolled steel output amounted to 30.64 million tons, down 3.6% y/y.