31 October 2025 – Reports from the U.S. market indicate that domestic stainless steel mills are already operating close to their maximum real production capacity due to tariffs. Austria has significantly increased its crude steel production in September, and German steel mills are recording notable efficiency gains.
U.S. Stainless Steel Mills Operating Near Maximum Capacity
Just a few months after the increase of Section 232 tariffs to 50%, U.S. stainless steel mills are already operating close to their real production limits. According to market sources, the nominal capacity utilization currently exceeds 80%, corresponding to a real utilization rate of over 95%. Even slight increases in demand could therefore lead to supply shortages in the U.S. stainless steel market.
As in the European Union, North American stainless steel capacities are limited and cannot meet domestic demand alone. According to the EU Joint Research Centre, Europe must cover up to 25% of its stainless steel demand through imports.
Austrian Crude Steel Production Rises Sharply in September
Good news for Austrian steelmakers: Crude steel production in the EU member state jumped by 37% in September compared to the same month last year. According to worldsteel, this places Austria 21st among the world’s largest steel producers.
German Crude Steel Production Up 15.4% Month-on-Month
Positive news is also coming from Germany. Crude steel production increased by 15.4% from August to September.
Steelmakers raised their hot-rolled steel output by 6.7% compared to September 2024, and production was even 8.6% higher than in 2023.
German Steelmakers Achieve Enormous Efficiency Gains
At the same time, German rolling mills have achieved significant efficiency improvements in 2025. These gains have resulted in an estimated reduction of around 2 million tons of crude steel compared to previous years, without lowering output. The input of crude steel per ton of hot-rolled steel fell by about 50 kg.
This is good news that should help ease political concerns over a decline in Germany’s crude steel production. Now, the German Steel Federation (WV Stahl)-the association representing the country’s steel producers-just needs to adjust its overly dramatic external communications and start sharing positive news again.
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