An alliance of German steelmaking states are supporting a global sustainable steel club that the US hopes will reduce China’s ability to undercut European and American markets, while welcoming support for the industry’s green transition.

The US and Brussels are continuing negotiations on forming a “sustainable” steel and aluminium alliance (GASSA) – a move which aims to tackle China’s increasing ability to flood global markets with cheap steel.

Now, a German alliance of eleven states hosting steelmakers has signalled its support for this approach following a high-level meeting on Monday (29 January) in Berlin.

The alliance “supports the continuation of talks between the EU and the US to address global overcapacity”, said a joint resolution of the eleven states, adding that this should be done “as part of the discussions on a Global Agreement on Sustainable Steel and Aluminium [GASSA]”.

Kerstin Rippel, CEO of the steel industry alliance WV, said “fair international trading conditions” remained crucial, alongside lower power prices, access to hydrogen, and “green lead markets” – where governments subsidise the purchase of newer, greener products.

Additionally, the states cheered the EU and US agreement to postpone a decision on US tariffs on European steel and aluminium until late 2025. “The European Union should continue to work constructively with the US to finally eliminate the US Section 232 tariffs,” the steelmaker states add.

Industry transformation

While brinkmanship in the tariff resolution negotiations continue, Germany’s steel industry looks to lead on climate-friendly steel by switching to hydrogen.

“The decarbonisation of the steel industry is crucial for a successful transformation towards climate neutrality,” said Economy Minister Robert Habeck, who welcomed the “initiative to hold the meeting”.

Berlin has put up money towards that goal. A consortium of steel companies in Saarland, a state of 1 million people where the industry plays a crucial role, has been awarded €2.6 billion to support its green transformation.

Salzgitter will receive €1 billion, whilst ThyssenKrupp Steel will receive aid at €2 billion. Subsidies for ArcelorMittal are stuck in the Brussels notification procedure. “The Federal Government is committed to concluding the proceedings as quickly as possible,” the ministry said on 18 December.

“The steel industry is a significant economic and employment factor in Germany – it is even systemically relevant for Saarland,” said Jürgen Barke, the state’s economy minister.

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