Steel products

Representatives of the country's federal lands formed the Steel Alliance

Representatives of eleven German steel regions have formed a new national initiative, the Stahlallianz (Steel Alliance), to defend their common interests. One of the key topics of their resolution is the extension of European quotas on steel imports, Homburg1 reports.

Earlier this week, a meeting was held between the ministers of the states, the minister of economy and climate protection, and top representatives of the industry organizations Steel Association and IG Metall.

Germany’s federal states, which are home to steelmaking companies, are calling on the government to extend the EU’s protective quotas on steel imports until mid-2026 to prevent the redirection of trade routes that distorts competition.

«The Steel Alliance is calling on the German federal government to advocate at the European level for a limited extension of steel safeguard measures in line with WTO rules, which provide for an eight-year duration of safeguard measures,» Stahlallianz said in a statement.

The Steel Alliance is also asking for more steel products to be included in the carbon border adjustment mechanism (CBAM) to protect steel production in Europe.

In addition, the steel regions are demanding that the government support the steel industry in order to create better investment prospects. In particular, they point to high energy costs and the impact of this factor on the industry’s international competitiveness. The Steel Alliance welcomes Berlin’s decision to reduce the electricity tax for manufacturing sectors. However, stabilization of network fees and transitional price financing for energy-intensive industries are still needed.

Another topic is the future transformation of the steel industry following last year’s constitutional court ruling that blocked the reallocation of €60 billion from unused coronavirus funds to the Climate and Transformation Fund. The Alliance welcomes the fact that the federal government wants to continue its programs to decarbonize industry and develop the hydrogen economy, but clarity on the procedure should be created as soon as possible.

The alliance members also ask the authorities to make public funding available to medium-sized companies in the sector in the long term throughout the transformation.

In addition, Stahlallianz called for continued negotiations between the EU and the US to address global overcapacity and decarbonize the steel and aluminum sectors.

As GMK Center reported earlier, the German steel industry’s demand for additional electricity will increase amid decarbonization. By 2030, the industry will need 48 TWh of additional electricity for hydrogen electrolysis.