In June this year, Germany’s crude steel output increased by 9.5 percent year on year to 2.93 million mt, according to data released by the German Steel Federation (WV Stahl). In the first half of 2026, Germany’s crude steel production rose by 8.9 percent year on year to 18.63 million mt.
In June, Germany’s pig iron output amounted to 1.73 million mt, up 6.3 percent year on year, while production in the January-June period increased by 9.3 percent to 11.63 million mt.
Meanwhile, the country’s hot rolled steel output rose by eight percent year on year to 2.69 million mt in June and increased by 5.4 percent to 16.11 million mt in the first six months of the year.
WV Stahl says recovery remains fragile
WV Stahl stated that despite the positive developments seen in recent months, it is still too early to declare a full recovery. The federation noted that annual crude steel production currently stands at 37.7 million mt, remaining below the 40 million mt threshold generally considered necessary for adequate capacity utilization across the steel industry. It also warned that the recent improvement does not yet indicate a sustainable recovery, adding that annual crude steel output is still projected to reach only around 37 million mt, below the level considered necessary for economically viable capacity utilization.
According to Kerstin Maria Rippel, CEO of WV Stahl, the increase in production mainly reflects a technical rebound, including inventory replenishment, rather than a genuine recovery in steel demand. She stated that demand from Germany’s main steel-consuming sectors, including construction, mechanical engineering and the automotive industry, has remained too weak to support a sustained recovery.
Federation welcomes new EU steel trade defense measures
Rippel also highlighted continued pressure from steel imports into the EU during the first half of the year. Against this backdrop, she welcomed the EU’s new steel trade defense instrument, which entered into force on July 1 and introduces country- and product-specific tariff-rate quotas, with imports exceeding those quotas becoming subject to an additional 50 percent tariff.
According to Rippel, the measure is essential for safeguarding steel production in Germany and the wider EU, ensuring that any future recovery in demand benefits European steel producers through higher capacity utilization.
WV Stahl calls for stronger demand and lower energy costs
Rippel stressed that additional measures are needed to stimulate domestic demand. She called for the rapid implementation of planned public investments, including projects financed under Germany’s Special Fund for Infrastructure and Climate Neutrality (SVIKG), arguing that these investments should be directed toward projects that strengthen industrial value creation, resilience and climate neutrality in Germany and across the EU.
The WV Stahl CEO further emphasized the importance of public procurement policy, calling for procurement rules that consider sustainability, security of supply and local industrial value creation alongside price. She stated that a binding “Made in EU” criterion would be particularly important in ensuring that public infrastructure investments help create lead markets for low-emission industrial materials.
In addition, Rippel reiterated that improving Germany’s industrial competitiveness requires lower energy costs. She called for a reliable industrial electricity price of €50/MWh, including grid charges, taxes and levies. Rippel also urged the German government to fully maintain, stabilize and further develop existing measures, including the grid fee subsidy, electricity price compensation scheme and industrial electricity price support, while allowing these mechanisms to be combined.
