German stainless steel distributor Gerber Steel has criticized the European Union's slow progress on its green steel transition, noting that the bloc has failed to meet its decarbonization goals.
Along with these structural shifts, commodity markets in Europe and Asia are still solid. Iron ore futures on the Singapore Stock Exchange are trading above 106 dollars per ton, reflecting steady demand from global steel producers.
European goals for greening steel production have not been achieved
Instead of driving industrial transformation, Europe's steel sector is suffering from regulatory complexity, subsidy disputes, and protectionist measures. Many steel producers have either frozen their conversion plans, postponed projects, or reviewed investments.
The main reasons are obvious: unfavorable market conditions, high risk exposure, and insufficient import protection. This reliance on political barriers prevents Europe from taking the decisive steps necessary to lead the global transition to green steel.
China is moving forward with green steel partnerships
On the contrary, China has made tangible progress. Domestic steel producers have been switching to low-emission production methods for many years and are now preparing to supply industrial consumers with more environmentally friendly materials.
A key milestone is the partnership between HBIS Group and BMW Group China, which was announced in 2022. Starting in 2026, BMW will introduce HBIS green steel technology into the production of its vehicles in China. This agreement shows how the transition from carbon-intensive to environmentally friendly steel can be achieved through market-based and competitive methods without excessive reliance on subsidies and protectionism.
The lesson learned from China's Steel Action Plan
China's recently published Steel Action Plan confirms this trajectory. Its first principle provides for "strengthening industry governance to promote the survival of the fittest," which demonstrates a strategy based on innovation, consolidation, and competitive progress.
Gerber Steel compares this to the current course of Europe, where additional protectionism and regulatory delays may lead to further lagging of the region in the global market. the race to decarbonize steel.
Steelorbis.com
