Strategic Solidarity & States’ Strong Summons Sealed

In its final session before the summer recess, Germany’s Bundesrat sent a decisive message for safeguarding the nation’s steel sector. The chamber, representing Germany’s federal states, backed a resolution from North Rhine-Westphalia urging the government to swiftly implement the European Steel and Metals Action Plan. The call was further strengthened by support from Saarland, Bremen and Lower Saxony, which pressed for a national steel summit to coordinate action among federal, state and industry leaders.

This resolution is seen by many as a landmark moment, signaling a rare unity among the German states to defend the nation’s steelmaking capacity at a time of profound market disruption and geopolitical flux.

Federation’s Fervent Forecast & Fear of Faltering Fortunes

Maria Kerstin Rippel, Managing Director of the German Steel Federation, welcomed the states’ unified stand but cautioned that time is critical. She said, “We thank the federal states for their strong support for Germany as a steelmaking location and support the call for a top-level meeting between the federal government and our industry.” Rippel underscored that it is now essential for the federal government to deliver on its coalition agreement commitments and to actively advocate for swift implementation of the European Steel and Metals Action Plan in Brussels.

She warned, “Without rapid implementation of these long-known measures, we face the loss of tens of thousands of jobs, the loss of Germany’s economic strength, the loss of our resilience.”

Foreign Footholds & Fierce Floods of Foreign Furnaces Feared

A critical part of the resolution focuses on foreign trade defense, which the federation views as particularly urgent. Current figures show that already, one in three metric tons of steel consumed within the European Union originates outside the EU. This rising share of imported steel is hitting German producers hard.

Compounding the challenge are US tariffs on steel imports, which stand at 50%, making exports to the US less attractive and shifting global trade flows further toward Europe. According to Organisation for Economic Co-operation and Development estimates, global steel overcapacity is projected to rise from 600 million metric tons in 2024 to over 700 million metric tons by 2027, unless immediate countermeasures are taken. Rippel noted, “It is high time for a long-term, effective European trade defense instrument, our proposals are on the table. Otherwise, Germany and the entire EU will be the big losers in the geopolitical realignment.”

Energy Expenditures & Exorbitant Electricity Expenses Examined

Another critical challenge comes from Germany’s high electricity prices, which remain significantly above international averages. Rippel emphasised that electric steelworks, which already operate in a particularly climate-friendly manner by producing lower CO₂ emissions, are being squeezed hardest. Over the past 18 months, rising grid charges have further increased costs.

She argued, “The long-promised reduction in crushing energy costs must now finally be implemented politically.” She further explained, “Electricity prices, which are still too high by international standards, and grid fees, which have increased massively over the past year and a half, are hitting electric steelworks and jeopardising the transformation of our industry to climate neutrality.” Rippel insisted that the reduction in transmission grid fees must be implemented quickly, as “every month of relief counts.”

She also called for a competitive, reliable industrial electricity price, noting, “As has been possible in France for years, and in Italy since this spring. The state aid framework has opened the door a crack here. Now it is up to the federal government to present a concept that actually relieves the burden on energy-intensive industry.”

Regional Resilience & Revitalisation Through Robust Reinvestment

Beyond defensive measures, Rippel and the federation see opportunity in proactive policies. A major lever, she said, lies in creating lead markets for low-emission raw materials and steel made in Germany and the EU. This could stimulate economic growth, strengthen regional resilience and advance the country’s climate goals.

She noted, “The special fund for infrastructure and climate protection, in particular, offers the opportunity to revitalise our economy, at least if policymakers focus on geographically proximate value creation.” Rippel concluded, “Those who want growth, resilience and climate protection must specifically strengthen our regional value creation.”

Temporal Tensions & Transformational Tasks Tabled

Rippel closed with a warning that speed is of the essence: “Now it's all about speed in implementation. To ensure industrial value creation, employment, and the transition to climate neutrality in Germany and Europe, decisive political action is needed – and immediately.”

The German steel industry is not only a cornerstone of industrial value chains but also a critical pillar of climate transition plans, given its role in producing lower-carbon steels and pioneering use of H₂ in future processes. Failure to act, she warned, could risk deindustrialisation, job losses and long-term strategic weakness in a competitive global market.

Key Takeaways:

• Bundesrat strongly backed North Rhine-Westphalia’s resolution urging quick adoption of the European Steel and Metals Action Plan and added a call for a national steel summit.

• Kerstin Maria Rippel of the German Steel Federation warned delays could cost tens of thousands of jobs & damage Germany’s resilience and climate goals.

• Rising foreign imports, 50% US tariffs & high energy costs threaten the German steel sector, as global overcapacity could grow to over 700 million metric tons by 2027.