Germany's Crude Steel Output Rises in Q1 2026, but Weak Demand Clouds Outlook

Germany's crude steel production increased by 7.5% year on year in March, reaching 3.35 million metric tons, according to data from the German Steel Federation (Wirtschaftsvereinigung Stahl, or WV Stahl). Over the first quarter of 2026, output rose 9% year on year to 9.26 million metric tons.

In March, the country's pig iron output stood at 2.02 million metric tons, up 6.7% year on year, while first-quarter pig iron production grew 10.4% to 5.87 million metric tons compared to the same period in 2025.

Hot-rolled steel production in March increased 3.5% year on year to 2.89 million metric tons and rose 4.9% over the first three months of the year to 8.01 million metric tons, both compared to the corresponding periods of the previous year.

Despite the increases, WV Stahl cautioned that the production gains do not signal a genuine recovery.

According to CEO Kerstin Maria Rippel, current output levels-equivalent to roughly 37 million metric tons annually-remain below the 40 million metric ton threshold needed for sustainable capacity utilization. Germany's crude steel production had already fallen to 34.1 million metric tons in 2025, its lowest level since the global financial crisis.

Persistently weak demand continues to be the primary challenge. Since 2017, steel consumption in Germany has declined by approximately 30%, or 12 million metric tons, with key sectors such as automotive and mechanical engineering still underperforming. Recent improvements in supply conditions are largely attributable to inventory restocking rather than a true recovery in demand.

Germany has fallen to eighth place in global steel consumption, reflecting a broader contraction in industrial demand. At the same time, rising imports are intensifying pressure on domestic producers.