German producers produce green shoots in a lean year.
According to the WSM association, the German steel and metalworking industry experienced another drop in production from January to October, by 1.6% compared to the first ten months of 2024.
The comparison points to a weak outlook, given that production in October was 1.9% higher than in October 2024, according to Callanish. Nevertheless, it notes that steel and metal producers are lagging behind other industries, while the negative trend persists during the first ten months.
German industry as a whole regained moderate optimism, the Institut der Deutschen Wirtschaft (IW) economics institute reported after Christmas, citing a survey conducted earlier this month. Most industries expect an increase in orders in 2026 compared to 2025, especially IT, banking, and services. Among the typical industries consuming steel, IW names construction based on special government funds for roads, railways and bridges.
Christian Vietmeyer, Managing Director of WSM, emphasizes the effectiveness of such measures and the fact that manufacturers need government support. "There are no luxury items on our wish list," says Vietmeyer. "We are only asking for the basics, such as competitive energy prices, affordable wages, taxes, and regulations that we can actually comply with."
Author: Christian Kel Germany
Kallanish.com