Germany

There was a slight 0.4% increase in Germany’s GDP in the first quarter of 2025, but the recovery remains fragile. Industry and construction are weakening while investments remain subdued. Despite global uncertainties, however, German companies are showing cautious optimism - fuelled less by new economic policy stimuli than by the more stable approach of the new government. The hope that announced measures will now be reliably implemented is boosting confidence, even if fundamental improvements have yet to materialise.

In the first five months of 2025, crude steel production fell by around 11% compared to the same period last year. Weak construction and automotive orders as well as high energy costs are weighing on the industry. The energy-intensive blast furnace route recorded a drop of more than 13%. And although electric steel production increased slightly, it remains at a low level. Pressure is being applied by the combination of global overcapacity and competitive imports from Asia.

Prices on the German recycled steel market came under pressure in the second quarter of 2025 on the back of uncertainty, inconsistent consumer purchasing strategies and a difficult international environment. The significant appreciation of the Euro made exports more difficult, with higher prices in foreign currencies reducing competitiveness, particularly in relation to Turkey. Despite scarce availability and rising export prices in June, there was no sustained recovery. High collection costs, low sales prices and generally subdued material volumes placed an additional burden on the trade.