Posted on 27 Nov 2025
The German Steel Association (WVStahl) has called for better conditions for manufacturers using electric arc furnaces (EAFs), the majority of which are medium-sized companies. This was discussed at a meeting organized by the association last week, according to Market Steel.
The IG Metall trade union and the governments of four federal states were invited to the dialogue.
According to the industry association, EAFs account for 30% of steel production in Germany. The sector provides approximately 32,000 direct jobs.
Gunnar Grebler, president of WVStahl, said that electric arc furnace steelworks are the backbone of the circular economy and key drivers of industrial decarbonization.
«At the same time, they are struggling with internationally uncompetitive electricity prices, enormous import pressure, and historically low demand. Without clear political decisions, investments, locations, and tens of thousands of jobs are at risk,» he explained.
Among the problems facing steel producers in electric arc furnaces, WVStahl also cites uncertainty about the availability of high-quality scrap.
To counter this, the industry is calling for a decisive package of measures with several key areas of action.
First and foremost, this involves ensuring competitive electricity prices for industry at €30-60/MWh, including grid fees and all taxes and levies. The reduction in grid fees in 2026 is an important step, but it also needs to be firmly anchored for the coming years.
At the European level, there is also a need to ensure fair trade and close gaps in the CBAM, ensure the availability of scrap, strengthen domestic production, and create leading “green” markets.
Earlier, WVStahl noted that the industrial price for electricity planned by the government bypasses the German metallurgical industry. The association considers the reduction of network tariffs to be an important step.
Source:GMK Center
