More than likely it’s a cost issue, coal is artificially cheap thanks to several countries subsidizing the coal industry like Germany, USA and Australia.
There’s also I guess the practical question of how much plant fiber per ton of metallurgical coal is needed, i.e. how land would be dedicated towards ‘producing plant fiber’ for the steel industry.
Metallurgical coal only makes up for rather small part of coal mining, around 7% of all coal production goes towards it, and while the process produces more GHG than just burning it for power it has a less profound impact because it’s just smaller. It’s also one of the places where we can’t really find an alternative, to produce steel you need to use bitumen coal because they have more carbon and less volatiles than charcoal.
On top of that steel is extremely recyclable meaning that any steel produced can be reused pretty much 1:1 with only a small amount of energy needed.
Germany is not alright and Bavaria is the least alright , nominally leftist parties barely get up to 10% in elections there so yeah was to be expected.