ArcelorMittal stops steel wall conversion in Bremen: What is it?

ArcelorMittal stops steel wall conversion in Bremen: What is it?

Bremen, Deutschland - The Bremen Stahlwerk from ArcelorMittal faces an unsafe future after the company has stopped the renovation. The reasons for this are diverse and reflect the challenges with which the entire industry is faced. Realy, the high electricity prices in Germany, the hydrogen supply in question and the flood of cheap steel imports are the three main reasons for the current investment restraint, such as inland reported.

As far as electricity costs are concerned, Germany is anything but a bargain in a European comparison. According to Eurostat, the price for large consumers is 15.09 cents per kWh - a real usury when you look at neighboring countries: France and Spain, for example, have a lot better with prices of 10.04 cents and 10.64 cents. This unfavorable situation is described by ArcelorMittal as intolerable, especially since there are no politically regulated electricity prices in Germany.

planning of electricity prices

In addition to the high prices, the lack of planning of electricity costs is on the list of problems. The composition of electricity prices, which consists of procurement, taxes, levies and network charges, ensures uncertainty. An interesting point here is that the network charges can make up to 50 % of the electricity prices. For the Bremen work there is a regulation on atypical network use, which is currently being discussed and could potentially bring relief.

hydrogen supply crisis

Another point of criticism affects the water supply for the planned switch to "green" steel, a process that uses hydrogen as a reduction agent. The supply at competitive prices, as Arcelormittal emphasizes, is far from certain. Annual steel production of 3.5 million tons at two locations was planned, and 75,000 tons of hydrogen should be obtained for Bremen. However, hopes for adequate hydrogen production seem to be cloudy, since an associated electrolysis system has been put on hold after the conversion is stopped. Climate energy assumes that the conversion of steel production to hydrogen will cost billions, whereby the energy costs for steel production using direct reduction methods are significantly higher than the previous blast furnace methods.

confrontation with cheap steel imports

The situation is also tightened by the increasing low -cost steel imports, especially from China. Statistics show that 27 % of the steel consumed in the EU is imported, with the main part of countries such as Turkey and South Korea. This increase in imports, some of which are subsidized, leads ArcelorMittal to underpin the uneconomics of their own productions. Protective measures are being planned, but will only be implemented from 2026. are.

As the steel mill in Bremen continues, it remains uncertain. The industry is under pressure, not only through internal challenges, but also through global market conditions that can hardly be improved. It is to be hoped that the situation will be stabilized in the coming years and that the course can be set in time for an environmentally friendly future.