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’– a move which aims to tackle China’s increasing capacity to ‘flood global markets with cheap steel’.

11 German states signalled their support for the alliance, following a meeting on 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 that ‘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.

“The decarbonization of the steel industry is crucial for a successful transformation towards climate neutrality.”

Robert Habeck, economy minister

“The decarbonization 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’.