At the world's leading environmental technology exhibition (IFAT), held in Munich on May 4-7, BVSE (Federal Association of Secondary Raw Materials and Waste Management) and BSV (Federal Association of German Steel Processing and Waste Management Companies) emphasized in a press release published yesterday, May 4, that the steel sector and scrap metal They remain under strong pressure due to persistently weak domestic demand. They noted that the German steel industry and its refining partners are experiencing a period of significant decline, although recent data show a slight increase in steel production.
2025 was a historic low for German steelmakers: crude steel production fell "by 8.6 percent, to just 34.1 million tons," according to a press release. This is the fourth time since 2018 that production has failed to reach the 40 million tonne threshold, which industry leaders such as WV Stahl CEO Kerstin Maria Rieppel have described as essential for sustainable capacity utilization. as SteelOrbis has already reported.
German crude steel production in 2025 and its impact on scrap use
Despite the fact that steel production in the first quarter of 2026 increased by nine percent year-on-year to 9.26 million tons, analysts warn that this does not mean a genuine recovery. Structurally, German steel consumption has fallen by about 30 percent (12 million tons) since 2017, driven by the continued backwardness of critical sectors such as automotive and mechanical engineering.
The decline in steel production has directly affected the steel processing industry. In 2025, purchases of scrap by German steel mills fell by 5.3 percent to just 12.0 million tons. Nevertheless, the share of scrap in total steel production increased to 46.2 percent.
According to the joint statement, the resulting surplus caused a change in trade dynamics, as scrap exports from Germany increased by 5.3 percent to 7.7 million tons, while scrap imports fell by 9.4 percent to 3.9 million tons.
BVSE and BSV explain that the net surplus of 3.7 million tons of scrap exports is "an inevitable consequence of weak domestic demand." For the processing industry, especially for small and medium-sized enterprises (SMEs), access to international markets has become an "indispensable outlet" for maintaining the collection and processing infrastructure in Germany.
A noticeable trend in the data for 2025 is the relative stability of the electric steel production route compared to traditional blast furnaces.
