German chancellor backs trade defense, energy relief for country's steel sector

Germany is prepared to push for a strong steel trade defense, energy policy and steel procurement preference to shield one of the country's foundational industries, ministers and steel and union representatives agreed at the Steel Summit held in Berlin Nov. 6.

German Chancellor Friedrich Merz supports the call for a Buy European approach to procurement and promised the government's support for measures that give priority to domestic and European steel in large infrastructure and defense projects.

He confirmed he would back the latest action in Brussels to curb cheap imports, endorsing European Commission proposals to tighten import quotas and to impose higher duties on volumes that exceed those limits.

"We have been asked to ensure in procurement that European steel and also German steel should be used preferentially," Merz said. "Yes, I agree with this. This is something different from what we always considered right in earlier times, when we had open markets, fair competition and really did not have these tariffs as they are now imposed in America. Those times are unfortunately over, and therefore we must protect our markets."

Gunnar Groebler, President of the German Steel Federation, said: "I thank the federal chancellor, the federal government and the minister presidents of the Steel Alliance for the clarity and determination with which they appeared at today's steel summit. The strong presence today from federal, state, industry and trade union representatives shows the future of the steel industry is a national community task."

IG Metall Second Chairman Jürgen Kerner said of the day's Steel Dialogue: "We have reached a common understanding today and made concrete agreements. The problems of the steel industry are not suddenly solved -- that was not to be expected either. But we have taken a good step forward."

Industrial electricity price, urgent relief

A central plank of the program is energy relief. Merz confirmed plans to seek approval in Brussels for a temporary industrial electricity price to run from 2026 for up to three years, alongside measures to reduce grid fees and extend electricity price compensation for energy-intensive companies.

"Without an effective reduction in electricity prices, this industry cannot survive," Merz said, underlining why affordable power is now the priority for sectoral survival and the green transition to low-carbon production techniques.

Industry representatives welcomed the commitment but warned that the sector needed rapid, concrete decisions, with Groebler calling the situation "dramatic" and urging swift implementation if Germany is to retain critical industrial capacity.

Former Vice Chancellor Robert Habeck launched the idea of an industrial power price in 2023 with a so-called bridging price at Eur60/MWh linked to new renewable power purchase agreements initially supported by state aid. However, that plan never advanced due to tight state aid rules and emerging budgetary constraints for the previous coalition.

CBAM and fair competition

Berlin reiterated its support for the EU Carbon Border Adjustment Mechanism as part of a broader effort to ensure fair competition. Officials said Germany would press to close loopholes and keep transitional free allowances where necessary until CBAM functions reliably.

Merz framed the mechanism as essential in stopping carbon-intensive imports from undercutting European producers: CBAM must be tightened so trade defense and climate policy operate in tandem rather than at cross-purposes.

The government pledged again to pursue measures to halt Russian slab shipments and rely on domestic capacity to plug gaps, a step producers and unions said would help protect local jobs and industrial resilience.

With 37.2 million tons of annual production, Germany is Europe's largest steel producer. Around 5.5 million jobs depend directly or indirectly on steel-intensive value chains in supplier and customer industries.

Platts, part of S&P Global Energy, assessed domestic HRC in Northern Europe at Eur605/mt ex-works Ruhr, and in Southern Europe at Eur590/mt ex-works Italy Nov. 5, both unchanged day over day.

Platts assessed imported HRC at Eur500/mt CIF Antwerp, up Eur10/mt day over day, and at Eur490/mt CIF Southern Europe, up Eur5/mt day over day.