Industry summit invitations extended by Merz to steel sector
The German steel industry is currently grappling with a significant decline in production, a situation exacerbated by intense competition, particularly from Asia, high energy prices, and the ongoing economic downturn.
Recent figures show a drop of around 12 percent in domestic raw steel production, with the first half of the year seeing output fall to 17.1 million tonnes. This decline is attributed not only to external factors but also to weak domestic demand and dumping offers from China.
In an attempt to address these issues, Chancellor Friedrich Merz has called for a collaborative effort. He has invited key players such as Thyssenkrupp, Salzgitter AG, and representatives from employee unions IG Metall and Gesamtmetall to brainstorm a rescue strategy for the German steel industry.
Vice-Chancellor Lars Klingbeil (SPD) and several federal states have also demanded a branch meeting for potential aid for the steel industry. However, no specific aid measures have been announced as yet.
The steel industry's troubles have been further compounded by the increased tariffs on steel and aluminium imports by US President Donald Trump. In early June, these tariffs were raised to 50 percent, up from the previous 25 percent. This move has led to hundreds of additional products, including motorcycles and crane vehicles, becoming subject to these tariffs.
The German Steel Federation has not provided specific details on the impact of these tariffs on individual companies. Furthermore, no information has been disclosed regarding any potential actions against Chinese dumping offers in the steel industry.
As the steel industry navigates these challenging times, the German government and industry leaders continue to seek solutions to ensure the sector's stability and future growth.
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