Germany's steel industry is facing an unprecedented crisis, driven by declining demand, fierce global competition, and high energy costs. Industry leaders, labor unions, and employees are urgently seeking solutions to halt the downturn. "The steel sector in Germany is in deep trouble," said Carsten Brzeski, ING’s chief economist for Germany.
Demand for German steel has plummeted to record lows, and although some recovery is forecast for 2025, experts believe it won’t reach the levels seen before the pandemic. The industry, which plays a vital role in Germany's automotive and manufacturing sectors, is struggling to keep up with cheaper steel production from China and other parts of Asia, intensifying its challenges.
Germany's green energy goals are also adding to the pressure. The push to make the steel industry more environmentally sustainable requires substantial investment, complicating the path to recovery for an already struggling sector.
If the industry cannot overcome these challenges, more than 100,000 jobs could be directly impacted. The wider economic consequences could be even greater, with up to half a million workers at risk due to the cascading effects on businesses reliant on the steel industry.
