14 November 2025 – An EU steelmaker operating at the edge of its capacity? Significant efficiency gains at German steel mills saving 2 million tonnes of crude steel per year? Revenues on the level of 2021 despite lower crude steel production? Is the situation for EU steelmakers really as bad as claimed?
Is the situation for EU steelmakers really as bad as claimed?
European steelsmakers and their lobby organisations are masters at painting the most distorted and negative picture of their sector.
German steelmakers with significant efficiency gains
What gets overlooked is that, for example, German steelmakers have achieved significant efficiency gains this year in the production of hot-rolled steel products, saving up to 2 million tonnes of crude steel. Neither do they mention that one of the larger blast furnaces in Germany had to be relined at short notice and was unable to produce for several months. Naturally, this is not mentioned in the corresponding press releases, as it could harm the political agenda.
Dutch steelmaker at the limit of its capacity
The figures from the current reporting period are also not nearly as bad as one might expect given the usual news coverage around steel. For example, the European arm of the Indian group Tata Steel has more than quadrupled its core earnings in the current reporting period.
In Tata Steel’s Full Year Report 2025, the following is stated about operations in the Netherlands:
“In the Netherlands, the performance was supported by near-rated capacity utilisation.” (p. 27)
Nearly full capacity utilisation at a steel mill in Europe? Hardly imaginable given the steel lobby’s apocalyptic communications.
Germany: Higher revenues with less crude steel
German steelmakers also like to exaggerate the difficult situation. The 9-month report of Salzgitter AG shows that external sales results have hardly changed compared to the statistical base year 2021 – despite crude steel production having fallen by more than 600,000 tonnes.
A closer look at other major European steelmakers is likely to reveal a very similar picture: actual results are significantly better than the sector would like politicians to believe.
German industrial electricity price to fall significantly
With the German government’s announcement that it intends to reduce the industrial electricity price for certain energy-intensive companies (including steel) to 5 cents per kilowatt-hour for the period 2026 to 2028, the justification for new steel tariffs, which would mean even more costs for European taxpayers, should effectively disappear.
Latest news
- Icelandic Aluminium Production Significantly Curtailed
- Timely CBAM Verification Could Become Difficult
- CBAM: Drafts on Certificate Prices and Verification Emerge
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.
