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The German Steel Association, Wirtschaftsvereinigung Stahl, has for years portrayed an overly dramatic picture of the country's steel production landscape. The latest figures for crude steel production in March 2025 once again suggest that Germany's steel industry is caught in a perpetual decline.
Crude Steel Stockpiling in 2024?
The association frequently compares current output with the previous year’s data. However, this approach reveals notable inconsistencies. In December 2024, German steel producers significantly ramped up crude steel production compared to the volume of hot-rolled steel products. This unusual discrepancy indicates that a stockpile of crude steel was built up. Consequently, from January to March 2025, Germany’s crude steel production figures fell, but mainly because producers were drawing down existing inventories rather than reflecting a true production slump.
Raw Iron Production Tells the Real Story
A closer look at raw iron output over recent months further clarifies the situation. Comparing recent data to that of January–March 2025 suggests that one or more blast furnaces were likely shut down for relining or maintenance. There is no technical alternative to explain the roughly 16% drop in raw iron—and, accordingly, crude steel—production during this period.
Historically, official records show that Germany’s blast furnaces have operated at an average 86% capacity utilization over the past two decades. A sudden decline to 73% utilization cannot be economically motivated, as blast furnaces cannot technically sustain such low operational rates without specific shutdowns for maintenance.
Who Is Being Misled?
Thus, the reports circulated by the German Steel Federation present only a partial truth and demand more thorough scrutiny and transparency. Particularly regarding the alleged declines in crude steel, raw iron, and hot-rolled steel production, it appears that selective use of statistics is creating a distorted narrative intended to influence public and political perception.
EU Parliament Moves to Raise CBAM Exemption Limit
On Thursday, April 24, 2025, the European Parliament’s Committee on Industry, Research, and Energy (ITRE) adopted a compromise amendment to the Omnibus I package. The committee broadly supports the European Commission’s proposed simplifications to the Carbon Border Adjustment Mechanism (CBAM). However, ITRE members criticized the proposed CBAM exemption threshold of 50 metric tonnes (MT) as being too low and recommended raising it to 110 MT.
Current ITRE Proposal Still Falls Short
While the move toward adjusting the unrealistically low CBAM exemption limit is a welcome development, it remains only an initial step. The bureaucratic burden and associated costs remain disproportionately high, particularly for small and medium-sized enterprises, even when using standard values for CBAM reporting. To truly ensure a level playing field across the EU, the CBAM exemption threshold should be set at several thousand tonnes.
