Germany calls for immediate action on Steel and Metals Action Plan to Protect Industry
As a crucial step before the summer holidays, the German Federal Council (Bundesrat) supported the resolution of the state of North Rhine-Westphalia demanding the early implementation of the European Steel and Metals Action Plan (ESMAP). This proposal, which also calls for a national steel summit, has received support from the states of Saarland, Bremen and Lower Saxony.
Kerstin Maria Rippel, Managing Director of the German Steel Federation (WV Stahl), welcomed the resolution. She stressed that the federal government must now fulfill its coalition commitments and pursue the adaptation of the ESMAP at the EU level in order to secure the future of the German steel industry.
The main challenges facing the German steel sector:
1. Foreign trade protection is urgently needed
German steel producers are facing increasing import pressures and global overcapacity, leading to a sharp decline in production efficiency and competitiveness. About a third of the steel consumed in the EU is imported, 50 percent U.
S. steel duties remain in effect, domestic demand remains historically low, and production facilities are underutilized. According to the OECD forecasts, global excess steel production capacity will grow from 600 million tons in 2024 to more than 700 million tons by 2027. Thus, the EU needs a reliable and long-term instrument to protect foreign trade in order to protect local producers and save jobs.
2. Competitive electricity prices are necessary
The production of steel in electric arc furnaces (EDP) in Germany is under threat due to high energy and grid costs. Prices for industrial electricity in Germany are significantly higher than international prices. The long-promised reduction in electricity transmission fees has not yet been implemented. Delays worsen competitiveness and climate change targets. It is necessary to immediately implement industrial electricity pricing models similar to those in France and Italy, and reduce network charges.
3. Eco-friendly transformation for internal growth
The development of leading markets for low-emission raw materials produced in Germany and the EU provides a key opportunity to boost economic growth and enhance the strategic sustainability of the German steel industry. Germany's special Infrastructure and Climate Fund can revitalize the economy, provided that policies focus on creating added value at the local level.
Industry attention: time is running out
Mr. Rippel issued a strong warning about economic