The German Steel Federation (WV Stahl) has warned that Germany's steel market remains under pressure despite projections of a recovery in demand, as global steel consumption is expected to return to growth in 2027, according to the latest Short Range Outlook published by the World Steel Association (worldsteel).
According to worldsteel, Germany's apparent steel consumption is expected to increase from 29.2 million mt in 2025 to 30.3 million mt in 2026, up 3.8 percent year on year, before rising by a further six percent to 32.1 million mt in 2027. However, WV Stahl emphasized that the projected growth reflects a recovery from historically low demand levels rather than a sustained improvement in market conditions. Germany is expected to rank eighth among the world's largest steel-consuming countries in 2027, compared with sixth place in 2017.
Faster industrial and infrastructure investments needed
Kerstin Maria Rippel, CEO of WV Stahl, stated that the outlook does not signal an end to the challenges facing German industry. She stressed the need to accelerate industrial investments and improve the conditions for domestic production to ensure that the projected recovery develops into a sustainable turnaround.
Rippel highlighted the importance of planned infrastructure investments in supporting steel demand. Although their full impact is expected to emerge gradually, she called for faster implementation of projects and greater preference for products manufactured within the EU to support European industrial production and employment.
International competition and trade diversion remain major concerns
Meanwhile, Rippel warned that international competitive pressure remains high, particularly as declining steel demand in China coincides with rising consumption in other regions. Against this backdrop, she emphasized the importance of protecting the European steel market against trade diversion and unfair competition.
Rippel welcomed the European Commission's efforts to introduce a new steel trade defense instrument and establish conditions for more competitive electricity prices. However, she stressed that further improvements and national implementation are necessary. According to her, competitive energy costs, effective trade defense measures and preferential treatment for European-made products in public investments will be essential to ensure that the anticipated recovery in steel demand benefits production facilities in Germany.
