Steel production in Germany is collapsing: Industry in crisis!

Steel production in Germany is collapsing: Industry in crisis!

Steel production in Germany has experienced a worrying decline. In the first half of 2025, crude steel production fell by almost 12 percent to just 17.1 million tons. These alarming figures were reported by the Steel Economic Association announced in Berlin. Managing Director Kerstin Maria Rippel made it clear that companies are suffering from weak domestic demand, particularly from the important sectors of construction, mechanical engineering and the automotive industry.

The current situation is particularly tense. A comparison of production figures clearly shows the extent of this decline. While production fell by 5 percent in 2022 and recorded a recovery of 4.5 percent in 2024, Germany is now at the production level of the 2009 financial market crisis. According to Yahoo Finance In addition to weak demand, the tough competitive conditions from abroad and the economic weakness are also the reasons for the decline.

Political measures required

In this context, Kerstin Maria Rippel called for a top meeting of steel company leaders with political representatives. The industry urgently needs effective measures, including European trade protection and competitive electricity prices. The high energy prices are putting additional pressure on the steel industry, as this is affecting competitiveness. Rippel insists on a rapid reduction in transmission network fees in order to improve the situation.

Also affected by this crisis is Thyssenkrupp Steel Europa, which is struggling with red numbers and plans to reduce the number of employees from 27,000 to just 16,000 by 2030. In order to achieve this, production capacities should be reduced, jobs cut and an agreement reached with IG Metall on a savings plan that will reduce employee income by an average of 8 percent. Loud wvstahl This is not the first decline in the industry: in May 2025, production was around 3 million tons, a decrease of 6.4 percent compared to the same month last year.

Long-term perspectives

The current decline in crude steel production shows the challenges facing Germany as an industrial location. The problems are complex, and the pressure on German steel companies is growing as they suffer not only from domestic but also from international competitive conditions. From a global perspective, the World Steel Association is forecasting a slight recovery in global steel demand of around 1 percent in the coming year. But for German producers, even this recovery could be difficult to achieve if measures are not taken soon to stabilize and support the industry.