The German steel industry is facing a serious structural crisis. High energy prices and rising steel imports from non-EU countries, combined with weak demand and shrinking margins, are creating a highly challenging market environment. Badische Stahlwerke (BSW) has also been affected by these conditions and, despite high capacity utilization, closed 2025 with a loss. The company has described the year as a period of strategic restructuring and preparation for the future. BSW is calling for clearer and more decisive action from political authorities, particularly regarding energy costs and trade protection policies.
BSW CEO Florian Glück stated that 2025 was a difficult year for the company, emphasizing that weakness in residential construction significantly reduced demand. Due to the downturn in the construction sector across Europe, demand for reinforcing steel—the company’s core product—remained at low levels, while global overcapacity and low-cost imports from non-EU countries continued to put pressure on the market. In addition, high energy and grid costs in Germany remain a significant burden for energy-intensive producers.
To address these challenges, the company took an important structural step in 2025, with the Südwest Group merging with the Dutch Van Merksteijn Group to form Reinforcing Steel Europe B.V., creating a stronger European structure. This integration brought production and processing facilities in Germany, the Netherlands, Belgium, and France under a single organization, improving efficiency within the group.
Despite sustained high capacity utilization, profitability remained under significant pressure, and BSW reported a loss for the third consecutive year in 2025. The company plans to focus on cost optimization and process improvements in 2026, while stressing the need for a more competitive framework for steel production in Germany.
Regarding new trade protection mechanisms under discussion in Brussels, the company expressed general support but stated that the current proposals are not sufficient. In particular, the exclusion of intermediate steel products is seen as allowing continued low-cost imports, which further distorts competition for European producers.
On energy costs, BSW noted that electricity prices in Germany remain above the EU average, while existing support schemes are considered fragmented and insufficient. Therefore, the company calls for a more comprehensive industrial electricity pricing model that integrates all instruments.
Overall, BSW warns that without both lower energy costs and stronger trade policy measures, the competitiveness of the European steel industry could weaken further.
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