25 April 2025 – Is German crude steel production misrepresenting the actual situation? Statistical figures from the German steel makers’ association not transparent enough. EU parliamentary committee wants to increase CBAM exemption limit – but proposals do not go far enough!
Does German crude steel production paint a false picture of the situation?
The German Steel Association ‘Wirtschaftsvereinigung Stahl’ has been spreading an over-dramatised picture of the allegedly poor situation of steel production in Germany for years. The recently published figures for crude steel production in March 2025 once again suggest that steel in Germany is on a continuous downward trend.
Crude steel stocks built up in 2024?
The association repeatedly compares current data with the previous year’s figures. However, this reveals several inconsistencies. In December 2024, German steel makers produced significantly more crude steel than usual when compared with the production of hot-rolled steel products. This indicates that stocks of crude steel had been built up. As a result, less crude steel was produced in Germany from January to March 2025, but the existing stocks were reduced again.
Raw iron production proves it
If we now compare raw iron production in recent months with that from January to March 2025, it becomes clear that one or more blast furnaces were probably shut down for relining or similar measures. There is no other technical explanation as to why an average of 16% less raw iron and therefore roughly the same amount less crude steel was produced in Germany in the first three months.
Note: According to official sources, blast furnaces in Germany have been running at an average capacity utilisation of 86% for the last 20 years. Such a dip in raw iron production can therefore only be due to a blast furnace undergoing maintenance or relining.
The decline from an average capacity utilisation of 86% to 73% in German blast furnaces cannot therefore be attributed to economic aspects – because it is already technically impossible to operate blast furnaces at such drastically reduced capacity.
Who is actually being manipulated here?
The reports from the German Steel Federation therefore only contain part of the truth and urgently need to be scrutinised and made more transparent. Especially in the area of alleged declines in the production of crude steel, raw iron or hot-rolled steel products. It only looks like figures are being used to manipulate public and political opinion.
EU Parliament committee wants to increase CBAM exemption limit
Yesterday, Thursday 24 April 2025, the EU Parliament’s Committee on Industry, Research and Energy (ITRE) adopted a compromise amendment to the Omnibus I package, which in principle considers the EU Commission’s proposed simplifications to the Carbon Border Tax CBAM to be sensible. ITRE members also noted that the EC’s proposed CBAM exemption limit of 50 MT was too low and should be increased. ITRE proposes to increase the exemption limit to 110 MT.
ITRE’s current proposal does not go far enough
Even if we fundamentally welcome the fact that there is finally some movement on an excessively low and unrealistic exemption limit for the import of CBAM-relevant products, this can only be a first step. The bureaucratic effort and the associated costs are disproportionately high, especially for small and medium-sized companies, even for CBAM reporting with standard values. In order to create a level playing field for all economic operators within the EU, the exemption limit for CBAM would have to be several thousand tonnes.
Latest news
- Can European steel still be saved?
- Stock markets upswing: hope for easing of trade dispute
- Nickel prices stable after significant increase
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
