In a recent turn of events, the German steel industry has encountered a slowdown in its recovery process. The latest figures from the national steel federation WV Stahl indicate that crude steel production at German mills in May totaled 3.19 million tonnes, marking a 2% decrease compared to the same month last year. This decline represents the first instance this year where production has fallen short of the previous year's output, signaling a potential loss of momentum in the industry's recovery.

The initial months of this year had shown a slight increase in output year-on-year, which was attributed to a cyclical restocking following significant declines experienced last year. However, the overall increase from January through May was only 4%, and the recovery at electric-arc furnace mills (+6.5%) was more pronounced than for oxygen-route mills (+2.5%). This discrepancy is partly due to the base effect from last year when EAF mills reduced production because of soaring electricity prices.

Christian Koehl, a representative from Kallanish, suggests that while there had been expectations of a sustained improvement, the recent figures cast doubt on the apparent recovery, hinting that it may have been more of an optimistic projection than a reflection of actual progress.