Thyssenkrupp Steel calls for effective trade protection against cheap imports
The European steel industry is at a crucial moment as global overcapacity and cheap imports threaten its future. In a guest article for the German weekly business news magazine WirtschaftsWoche, Dennis Grimm, a representative of the executive board of the German steel company thyssenkrupp Steel, urged effective trade protection, a robust carbon boundary regulation mechanism (CBAM), mandatory quotas for "European content" and structural reforms to preserve Germany and Europe. competition.
Mr. Grimm warned that blast furnaces across Europe are closing due to reduced demand and fierce global competition. Transformation projects and new investments are being postponed, and jobs are disappearing at an alarming rate. The ripple effect extends not only to the steel industry, but also to the automotive, chemical, and mechanical engineering industries. Grimm stressed the need for a clear strategy, as China and India have transformed from partners to competitors, and China is becoming a systemic competitor.
Global excess steel production capacity is projected to reach 700 million tons, which is six times the total demand in the EU. Most of this volume comes from China, where steel production subsidies are 10 times higher than the OECD average. Grimm argues that without protection, European manufacturers have no chance of resisting such dumping practices.
In addition to the pressure, the EU-US tariff agreement imposed a 50% import tariff on the US, which led to an even greater increase in global steel surpluses in Europe and closed export routes for EU producers. "Inaction in the face of overcapacity will have disastrous consequences for the European steel industry and its value chains," Grimm warned.
Three urgent measures
Effective trade protectionReliable Carbon Boundary Adjustment (CBAM)Quotas for "European content"Brussels has proposed halving quotas on duty-free imports and imposing a 50% tariff on excess imports. Eleven EU countries support this plan, but Germany has not yet joined it.
Grimm criticized the loopholes in the current CBAM rules that allow them to be circumvented. He stressed the importance of extending CBAM to recycled steel products and maintaining free EU ETS contributions until the reforms take effect.
To avoid subsidizing foreign producers at the expense of domestic funds, Grimm called for the introduction of mandatory