Railway disruptions pose risks for German steelmakers

The current situation regarding the network upgrade is already affecting the industry

German steelmakers have warned that prolonged disruptions in rail freight transport threaten the supply of raw materials to companies in the industry. This is stated in a press release from the country’s Steel Industry Association (WV Stahl).

“The current situation with the transport of ore and coal by rail is extremely critical for the steel industry. Repair work, disruptions, and inadequately prepared detour routes are jeopardizing the reliable supply of plants and are already leading to the first production disruptions,” said Kerstin Maria Rippel, CEO of WV Stahl.

She added that modernizing the network is necessary, but should not disrupt basic industrial supply via rail. DB InfraGO (the organization responsible for managing the country’s railway infrastructure) must improve the process and reliably ensure supply to major industrial centers.

It is worth noting that Germany’s steel industry remained under significant pressure last year due to weak demand from key customers, rising imports, high energy costs, and challenges related to decarbonization.

As noted in the WV Stahl annual report, the country’s steel sector is at a turning point, driven by the need to achieve climate neutrality while maintaining global competitiveness. The industry association believes that stable framework conditions are necessary for investments in decarbonization and technical modernization.