Germany’s ferrous scrap exports experienced a historic drop in 2024, declining by 11% compared to 2023. The total volume of exported scrap reached just 7.1 million tons, marking the lowest figure since data collection began in 2006. This significant decrease highlights ongoing challenges in the global scrap market and domestic issues within Germany’s metallurgical sector.

The export value of ferrous scrap also fell, totaling €3.9 billion in 2024, down from €4.2 billion the previous year. Among the hardest-hit destinations was India, which saw a reduction of 300,000 tons in shipments, bringing its imports of German scrap down to just 111,000 tons. As a result, India fell out of the top ten largest buyers of German scrap metal. Other key export destinations, including Italy, the Netherlands, and Turkey, also recorded considerable declines in import volumes.

Despite these challenges in scrap exports, Germany’s steel production grew by 5.2% in 2024, reaching 37.23 million tons. This growth, however, did not translate into increased demand for scrap metal. The slow progress in electrifying the steel industry contributed to this imbalance, as traditional production methods dominated the sector. The limited adoption of electrified steelmaking has prevented a substantial increase in scrap usage.

The situation has prompted industry organizations, such as the German Steel Scrap Association (BDSV) and the Association of German Metal Traders and Processors (VDM), to call for urgent regulatory reforms. These associations have emphasized the need to address high electricity costs, which are a significant obstacle for metallurgical enterprises. They advocate for reducing electricity taxes and fees to the minimum levels allowed within Europe, accelerating the development of renewable energy infrastructure, and introducing temporary support mechanisms to assist the industry during the ongoing energy crisis.

The broader context reflects progress and challenges within Germany’s steel and scrap industries. While steel production increased, with pig iron output rising by 2.9% year-on-year to 24.33 million tons and hot-rolled steel production growing by 3% to 31.61 million tons, overall smelting volumes remained below the 40-million-ton threshold for the third consecutive year. This continued stagnation reflects the lingering impact of economic and energy crises.

The decline in scrap exports and the slow pace of industry modernization underscore the pressing need for systemic change. Reducing regulatory barriers, cutting energy costs, and promoting electrified steelmaking are vital steps to stabilize the scrap and steel industries. As Germany navigates these challenges, it must balance economic resilience with sustainable and innovative growth strategies. The year 2024 serves as a reminder of the complex interplay between domestic policies, international markets, and technological advancement in shaping the future of these critical sectors.