3 March 2023 – The steel shortage in the United States is now exacerbated by outages at several steelmakers. US Congressional Steel Caucus calls for strong market protections. End to Green Steel subsidies demanded: The European Commission must impose tougher conditions on EU subsidies for Green Steel and demand the conversion to CO2-neutral steel production of foreign holdings of EU steel companies.
Steel shortage in the USA worsens
Despite increasing imports by more than 18% in January 2023 compared to the previous month, the United States is not getting out of its ferrous shortage. Now add to this several outages due to maintenance at US flat steel mills. The shutdowns from March to May are expected to cost a production volume of more than 300,000 metric tonnes. In the past few days, prices for US HRC had already risen to more than $1,000 per tonne.
Section 232 tariffs: US Congress puts more pressure on President Biden
Congressional Steel Caucus Chairman Rick Crawford and Vice Chairman Frank J. Mrvan, along with 35 other bipartisan members of the Congressional Steel Caucus, have sent a letter to President Biden in support of maintaining Section 232 tariffs and quotas and calling for US trade remedy legislation to be updated to reflect modern challenges facing the metal producing industry.
Preservation of Section 232 Tariffs demanded
In the letter to President Biden, the members of the Congressional Steel Caucus again urge that the Section 232 Tariffs and Quotas be preserved, and that there be laws in place to ensure strong trade, to address unfair trade practices, and to ensure environmental protection from emissions-intensive foreign production of ferrous metals.
Statement against WTO ruling explicitly praised
Also, the letter specifically commends USTR Tai’s strong statement in defence of Section 232 trade measures against recent WTO panel assaults that improperly challenged U.S. national security.
End for EU Green Steel subsidies demanded
Indian steel jump only with coking coal? How does that fit in with the EU climate targets?
The European Union and Germany have recently stepped up their efforts to promote India and better economic ties there. There has even been talk of a cuddling course towards India from the critical side.
Indian producers demand 161 million tonnes of coking coal – per year!
Now, the Indian industry has recently demanded a continuous and reliable supply of more than 161 million tonnes of coking coal per year in order to be able to achieve the production target of 300 million tonnes of steel by 2030. Which, contrary to all the calls, assurances and pretended actions on the part of India in terms of CO2 reduction in steel, runs completely counter. The jump in CO2 emissions would be so high that it would simply thwart the European Union’s efforts to still be able to achieve the global climate targets.
EU steel producers paint themselves green
At the same time, EU steel producers with an Indian ownership structure receive billions of euros in subsidies from the European Commission and the member states, which create free capital for the non-CO2-neutral capacity expansion of these companies in non-European countries. But the main thing is to paint oneself green.
Green Steel: EU subsidies tied to conditions for foreign participation
Those who demand the European Carbon Border Tax CBAM, those who want free ETS certificates, those who want the conversion of their production paid for by the EU taxpayer, cannot play a game of double standards. EU subsidies for Green Steel must be linked to conditions for foreign participation as well! Anything else is fraud on the taxpayer and the next generation.
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.