Why Asian Stainless Steel Mills, Represented by China, Are More Competitive?
Jul 19, 2024
According to a message from Gerber on July 18, 2024, if there is one thing clear about Europe, it is that domestic steel and stainless steel mills have been reluctant to invest in outdated production methods for many years.
Without subsidies from the EU or member states, Europe would be helpless in terms of steel. This is not a new or surprising realization; Brussels has known this for decades.
The recent position paper submitted by the German branch of the European People's Party (EPP) to the European Parliament, calling for a "European Steel Agreement," once again clearly shows this, and also shows who the final product of this position paper is.
This is the fear of Western multinational steel groups, who use completely outdated steel plants and technology to produce steel and stainless steel in Europe, and once again whisper evil stories about stainless steel to members of the European Parliament. If more protection and subsidies are not provided, a flood of cheap steel may sweep across Europe. Important evidence shows that this perfidious strategy and politicians who are willing to be obedient victims, in addition to the EU's safeguard measures for certain steel products (extended to 2026), bureaucratic CBAM mistakes, and two anti-circumvention lawsuits against flat-rolled stainless steel from Indonesia.
Despite the fact that Europeans have been squeezing the so-called "cows" behind national barbed wire fences for decades, Asia has built new state-of-the-art steel plants.
The production methods used include the RKEF-AOD process in Indonesia and China. These steel plants can not only save up to 25% of energy compared to old electric arc furnaces (EAF) in Europe to produce stainless steel, but also reduce carbon dioxide emissions by using renewable energy and at least 90% scrap content.
The outdated steel plants that Europe (such as ThyssenKrupp, Westphalia Hütte, Dortmund, Germany, 2002) sold to Asia before the 21st century no longer exist.
Nevertheless, Brussels is still trying to spread the threat of overcapacity (it has a lot of overcapacity itself) and dirty steel production.
In order to prove the rationality of the carbon border tax CBAM, despite it being full of formal errors and obviously based on false data and assumptions.
The demand for import quotas for steel produced by electric arc furnaces under CBAM clearly shows this. Just use green energy and a little more scrap in the electric arc furnace, and steel and stainless steel will suddenly become carbon dioxide-friendly.
Of course, it is not possible for the whole world to suddenly start producing green steel. Brussels and companies do not plan for this!
For example, the population of Germany, a member state of the EU, is getting older, and the next generation no longer wants to ruin their health for invisible investors and replaceable company leaders, but there are still many places in the world with a better population situation. In Asia, it is easier to find and retain labor. Whether through education and training, health insurance, or fair and reliable pay. For example, this can be seen from a famous Chinese stainless steel manufacturer, which not only invests in the most advanced equipment and environmental protection but also carries out extensive training programs, thus caring more about its workers than some (Southern European) European stainless steel mills.
European steel and stainless steel industries no longer need any protectionism based on hypocrisy and lies. What Europe needs is an optimistic spirit. The willingness to take entrepreneurial risks again. And a significant reduction in bureaucracy that only serves the self-protection of the state and European institutions. Europe must get rid of old and rigid structures, dismantle market blockades and trade barriers.
If some steel oligopoly enterprises are put aside in this process, that's nothing big. European SMEs are desperately looking for qualified employees and are very willing to express the necessary gratitude to them. And are very happy to get more attention from Brussels to make changes.
Americ Energy (CHINA) Co., Ltd. stands as a prominent manufacturer and distributor of a comprehensive range of stainless steel products, designed to cater to the diverse needs of various industries. Their offerings encompass stainless steel tubes, plates, strips, and square tubes, all manufactured to uphold the highest quality benchmarks.
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