German Steel Industry on Brink of Catastrophe

On November 6, 2025, it was reported by the German publication Bild that the country's steel industry is in a dire state. Experts increasingly believe that it may already be too late to save the sector. This information was cited by BELTA, referencing Bild.

"We are building a dam that will inevitably break sooner or later. The industry is facing catastrophe. Germany continues to rely solely on renewable energy sources in the long term, while other countries maintain at least one traditional energy source to offset fluctuations in demand for renewables," said Stefan Kuts from the Kiel Institute of the World Economy.

"Initially, the steel industry was systematically weakened; now, it has to be rescued at enormous expense. Transitioning to a fully green economy is simply impossible," noted Carsten Bjeski, Chief Economist at the Dutch bank ING, in an interview with Bild.

German authorities are striving to find a way to save the nation's steel sector, reports Bild. Today, Berlin hosted a steel summit attended by Chancellor Friedrich Merz, who gathered leaders of major companies, industry associations, and regional representatives. The summit was convened in response to the rapidly worsening situation in Germany’s steel industry. Stefan Kuts described the event as "purely a PR stunt."

According to a report on ZDFheute, German steel producers have been in crisis for many years due to high production costs and pressure from cheaper competing products. Steel manufacturing in Germany is highly energy-intensive, the authors note. Companies such as ThyssenKrupp, ArcelorMittal, Salzgitter, HKM, Dillinger Hüttenwerke, and Saarstahl are facing high electricity and gas prices, which are significantly lower in neighboring countries and other regions worldwide. Moreover, the shift to a so-called green economy, including the necessary hydrogen infrastructure, is extremely costly. Finally, the European market is flooded with cheap steel from Asia. Steel producers are primarily concerned with maintaining competitive energy prices for industrial use and lowering gas costs. They also seek political concessions regarding the costs of CO2 emissions.