German steel industry: positive signals on policy, concerns over energy costs

Following the latest decisions by the German coalition committee on measures to strengthen the industrial base and ease energy costs, Kerstin Maria Rippel, Director General of the German Steel Federation (Wirtschaftsvereinigung Stahl), has issued a statement.

Rippel welcomed the government’s agreement on a unified position regarding the EU Automotive Package, in particular the commitment to the proposed mechanism for recognizing low-emission steel.

“It is good that the federal government has agreed on a clear position,” she said, adding that the mechanism would “strengthen demand for climate-friendly steel” while giving the automotive industry more flexibility on its path to climate neutrality. At the same time, she emphasized that such steel should be produced within the EU in order to support the development of a European lead market.

At the same time, Rippel criticized the exclusion of industry from the government’s immediate energy relief programme. Energy-intensive sectors such as steel continue to face significant additional costs due to the recent energy crisis, further weakening their international competitiveness.

“It is therefore all the more important to implement the announced measures quickly,” she said, pointing in particular to the need for planning certainty in electricity price compensation.

Looking ahead, Rippel stressed the importance of reliable political framework conditions. In her view, safeguarding the long-term competitiveness of Germany’s steel and industrial base will require a clear political commitment to an industrial electricity price of around €50 per megawatt hour, including all levies and grid charges.

Source and Photo: WV Stahl