Arcelormittal stops Green Steel: Shock for the German Steel World!
Arcelormittal stops Green Steel: Shock for the German Steel World!
ArcelorMittal, one of the largest steel manufacturers in the world, stops its plans for the production of green steel in Germany. The background: High energy costs make the implementation of these innovative projects uneconomical. This reports Marketscreener.com , and it is another damper The already battered German steel industry, which has been in a recession for some time.
Despite these difficulties, Germany remains one of the largest steel producers worldwide. The annual production volume is currently around 37 million tons. The steel consumption per capita was around 337 kilograms in 2023, which shows that demand in the population is unbroken for steel products. The steel industry's turnover recently was around 45 billion euros, which makes around 37 percent of the total sales of the German metal industry, as informed.factors of the steel industry
Developments in the German steel industry are in the context of a global market that has changed significantly in recent decades. Thomas Brenner from Salzgitter AG reports that the German steelworks are increasingly under pressure, since overcapacity and falling prices have been a serious problem since the 1960s. Many steelworks, especially in the Ruhr area, had to close, which led to a drastic decline in production facilities. Although the number of employees in the steel industry has been relatively constant in the past 15 years, they have been declining since 2020.
Currently it also shows that the steel price index rose from 66 points in 2016 to 108 points in 2024. This price development underlines the challenges in front of which the industry is facing. While Thyssenkrupp AG had to close several locations and in 2023 with a turnover of around 35 billion euros the lowest posted in the past 20 years, companies like Salzgitter AG have to make the right decisions to remain competitive.
The search for sustainable solutions
A promising aspect remains the focus on sustainability. Steel production is responsible for around a third of the emissions of German industry. Innovative approaches, such as the hydrogen method, which Thyssenkrupp discussed, could contribute to reducing these emissions. In addition, recycling is very important, because in Germany around 14.9 million tons of steel scrap have recently been recycled for the production of new raw steel, which is both economically and ecologically sensible.
The course of Salzgitter AG is currently EUR 19.64, with a pleasant upward trend of 24.37 percent in the year. Experts see a medium price target of EUR 23.18, which means a distance of +20.97 percent to the current course, such as ft.com In this solid position, Salzgitter AG must now tackle the challenges of the industry and set strategic course to secure a successful future.
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| Ort | Salzgitter, Deutschland |
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