Germany

The German economy continues to stagnate. Despite a slight increase in incomes and falling interest rates, domestic demand remains weak. The industrial and construction sectors are contracting while the service sector appears to be somewhat more stable. Although early indicators point to a slight improvement in sentiment, investment and exports are declining. Structural challenges remain high, although investment by the new German government could provide a boost.

German steel production rose sharply in 2024 but suffered a double-digit decline in early 2025 owing to high electricity prices and a weak industrial economy. In the steel market, prices for hot rolled coil and rebar increased by, respectively, 14% and 5% in the first quarter, driven by ongoing discussions on EU safeguard measures, supply shortages and cost increases. Demand, however, remained subdued.

The recycled steel market has recovered noticeably since January. Rising prices were supported by limited supply, higher domestic demand and more stable export activity.