Fight for the future: Steel industry threatens crisis without price reform!

Fight for the future: Steel industry threatens crisis without price reform!

On November 6, 2025, important heads of the German steel industry met at a press conference after the much-noticed “Steel Summit”. Those present included Federal Chancellor Friedrich Merz, the President of the Steel Association, Gunnar Groebler, as well as Lars Klingbeil, Federal Minister of Finance, and Jürgen Kerner, 2nd Chairman of IG Metall. At this meeting they discussed pressing issues that affect the future of the domestic steel industry and, last but not least, should secure many jobs in Germany.

A central concern of Friedrich Merz was the emphasis on the “industrial electricity price”. He made it clear that the current high energy costs represent a major burden for the steel industry and that without these costs being reduced, the industry would not be able to survive. Steel production is a key industry that affects countless companies and employees. “We have to get politicians to work to preserve this industry,” said Merz.

The challenges of the steel industry

Gunnar Groebler also warned of an impending loss of industrial jobs in Germany. “5.5 million jobs depend on steel-intensive value chains,” and there is uncertainty and fear of the future even in industrial regions. The numbers speak for themselves: Crude steel production in Germany fell by almost 12 percent to 17.1 million tons in the first half of 2025, reaching the level of the financial crisis of 2009. There is weak domestic demand from the construction and mechanical engineering sectors as well as the automotive industry, which is making the situation even worse Deutschlandfunk reported.

In an international comparison, steel production is very dominant in Asia, where around three quarters of global crude steel is produced. Germany itself is the largest steel producer within the EU, but the industry is under pressure from low-cost competition from abroad, especially from Asia Tagesschau reports.

Politics and the need for change

Lars Klingbeil announced that the import of steel from Russia should be stopped as quickly as possible in the context of the ongoing conflict in Ukraine. This could give the German steel industry a boost to differentiate itself from foreign competitors. However, Groebler also warned that switching to green energy would be expensive and difficult to achieve without political support.

The discussion about protectionist measures shows that the federal government is skeptical about giving preference to domestic companies. But given US tariff policy and the high energy costs in Germany, the situation for domestic steel manufacturers is becoming increasingly precarious. Critical voices, such as that of CDU General Secretary Carsten Linnemann, have already called for EU punitive tariffs against the pricing policies of Chinese competitors.

Overall, the steel industry remains a decisive factor in the German economy. With around four million people working in steel-intensive industries and around 90,000 in steel production, every decision made now has enormous consequences. In the future, the industry will continue to rely on policies that adequately address growing challenges Wikipedia points out.