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The European steel industry is facing a critical juncture amid global oversupply and cheap imports. L360 steel Dennis Grimm, a spokesperson for the executive board of German steelmaker ThyssenKrupp Steel, published an article in the German business weekly Wirtschaftswoche, strongly urging effective trade protection measures, the establishment of a robust carbon border adjustment mechanism (CBAM), the implementation of binding "European content" quotas, and structural reforms to maintain Germany's and Europe's competitiveness.
A Crossroads for the Steel Industry: Oversupply and Job Losses
Grimm warns that blast furnaces across Europe are shutting down due to shrinking demand and fierce global competition. Transformation and new investment projects are being postponed, and jobs are disappearing at an alarming rate. L360 steel The ripple effects extend beyond the steel industry, impacting downstream sectors such as automobiles, chemicals, and machinery manufacturing.
The Urgency of Implementing Trade Protection
The global steel supply surplus is projected to reach 700 million tons, equivalent to six times the total demand in the EU, with the majority of this surplus coming from China. Grimm points out that without protectionist measures, European producers simply cannot compete with their Chinese counterparts.
Furthermore, the EU faces another, even more serious challenge. L360 steel The newly reached bilateral tariff agreement has fixed tariffs on EU steel and aluminum exports to the US at 50%, leading to a greater influx of surplus steel into Europe and simultaneously cutting off EU steel exports to the US. Grimm warned, "Inaction in the face of oversupply will have disastrous consequences for the European steel industry and its supply chain."
