Global Steel Industry Faces Closures and Upheaval

The global steel industry is undergoing significant disruption, with major producers facing closures and suspending expansion plans due to persistent structural and policy challenges. In Germany, ArcelorMittal has put its green steel project on hold, citing a lack of viable green hydrogen and uncompetitive conditions despite government subsidies, raising concerns over the country's decarbonization goals. In South Africa, ArcelorMittal is preparing to close its long steel operations by September 2025 after depleting emergency funding, attributing the decision to weak demand, high costs, poor logistics, and import competition, which threatens 3,500 jobs. Government interventions in South Africa have yielded little progress in averting these closures. The US steel sector is also contracting, highlighted by the closure of Cleveland-Cliffs’ Steelton mill and its impact on local communities. Collectively, these developments underscore the existential risks facing traditional steelmakers amid global industry transformation and the push for decarbonization.