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| Germany Steel |
Government and Industry Leaders Meet to Address Germany Steel Crisis
Germany faces a deepening Germany steel crisis, prompting Chancellor Friedrich Merz to convene a national steel summit on November 6, 2025. The meeting includes Finance Minister Lars Klingbeil, Economy Minister Katerina Reiche, Labor Minister Berbel Bass, and executives from leading steel companies. Meanwhile, regional prime ministers from North Rhine-Westphalia, Lower Saxony, Brandenburg, and Saarland will join discussions. The summit aims to preserve domestic steel production and secure employment amid mounting sectoral challenges.
Key Challenges and Policy Measures Amid the Crisis
The Germany steel crisis stems from rising energy costs, reduced automotive demand, cheap Chinese imports, and high green steel transition expenses. Consequently, German producers face declining competitiveness. The government considers subsidized industrial electricity tariffs, while the European Commission plans protective measures, including cutting duty-free import quotas by half and raising tariffs to 50% above the quota. These policies aim to stabilize production and maintain energy security for the EU.
Production Decline Highlights Urgency for Intervention
Steel output fell sharply in the first nine months of 2025, emphasizing the Germany steel crisis. Oxygen converters produced 17.36 million tons (-13.3% y/y) and electric arc furnaces produced 8.02 million tons (-4.6% y/y), bringing total production to 25.38 million tons (-10.7% y/y). Therefore, annual production is expected to remain below 40 million tons for the fourth consecutive year, signaling a recession-level contraction. Immediate policy intervention is critical to safeguard the sector and national economic stability.
ScrapInsight Commentary
The Germany steel crisis demonstrates systemic vulnerabilities from energy costs, global competition, and green transition pressures. Protective tariffs and electricity subsidies may temporarily stabilize the sector. However, long-term competitiveness will require innovation in energy-efficient and low-carbon steel production.
