Germany's Salzgitter is at least 50% hedged for gas as Iran war rages on, CEO says (updated)

Salzgitter AG

23/03/2026 09:00

Adds CEO comments in paragraph 3-4, details on results in paragraph 5

By Christoph Steitz

FRANKFURT, March 23 (Reuters) - Salzgitter has hedged itself against soaring gas prices, the German steelmaker's CEO said, adding the group had locked in more than 50% for this year and next as a spiralling conflict in the Middle East continues to ripple through energy markets.

"We are actually very well hedged in the gas market for the whole of 2026 and, to some extent, 2027 as well," Gunnar Groebler told Reuters after the firm released full-year results, adding that hedge rates were even higher for power prices.

Groebler said major price increases were hitting the firm for gas volumes it buys on the spot market, also noting increases in freight fares as a result of the U.S.-Israeli war on Iran that have hit large parts of Europe's industry.

Salzgitter, Germany's second-largest steelmaker after Thyssenkrupp TKAG.DE, has therefore started discussions with clients about how these price increases could be passed on, Groebler said.

Shares in the company were down 8.2% after it
reported
 a 15.5% drop in 2025 core profit to 376 million euros ($434 million) and warned of a tense environment in Germany's economy at the start of 2026.

($1 = 0.8669 euros)

 (Reporting by Christoph Steitz, Editing by Miranda Murray)

 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647))