German steel industry says decarbonisation is key opportunity to reverse ongoing production decline

The German steel industry pins its hope for revival on the switch to low-emission production, as output in the sector continues to slump. Crude steel production in the country fell around nine percent in 2025 to a level last seen in the aftermath of the financial crisis in 2009, the German Steel Association said. 

The association blamed the decline on historically weak demand, growing competition from non-EU countries, and comparatively high energy prices. It also pointed to global overcapacity in Asia and unpredictable US customs policies as exacerbating the issue.

The lobby group singled out "the targeted development of lead markets for increasingly low-emission steel made in the EU as a key opportunity for new economic stimulus."

“The use of increasingly low-emission raw materials must be made mandatory in public investment,” said Kerstin Maria Rippel, the association's managing director. She called for a reform of public procurement law at the national level to create the necessary framework. “In order to specifically strengthen demand for climate-friendly steel and trigger effective economic stimulus, EU content rules are also needed, which must be established in Brussels,” she said.

Train operator Deutsche Bahn signed a supply contract with Saarstahl Rail for around 22 kilometres of rail tracks made from green steel in November last year. Clean industry think tank Agora Industry warned at the start of this year that Europe risks losing momentum on industrial decarbonisation unless it quickly creates lead markets for low-carbon steel, cement and plastics.