Source link : https://news7.asia/news/the-european-steel-industry-in-great-difficulty/
The European steel industry is suffering. In Germany, ThyssenKrupp announced on Monday, November 25, the elimination of 11,000 jobs out of 26,000 in its steelmaking division by 2030. The same day in France, ArcelorMittal revealed to the unions its plan to close two small steel processing plants. steel in Reims and Denain, which employ 135 people. Management mentions “a market down 30% since 2019” and “low-priced extra-European imports which unbalance competitive conditions”. For its Dunkirk site, ArcelorMittal also officially confirmed on Tuesday, November 26 , that it suspended its investment of nearly a billion euros intended to reduce its carbon footprint, thanks to a new steel manufacturing process replacing coal. The commitment was made last January and welcomed by Bruno Le Maire, the Minister of the Economy at the time, who came on site, checkbook in hand. The State was to support, to the tune of 850 million euros, the project, which alone would make it possible to reduce French CO2 emissions by 1%. ArcelorMittal says it is now waiting for a more favorable economic situation and, above all, strong measures to from the European Commission. In the meantime, the unions are worried. “If no decision is taken in the coming weeks by the European authorities, we are heading straight towards an industrial cataclysm, with a multiplication of social plans,” warns Xavier Le Coq, CFE-CGC coordinator at ArcelorMittal. steel is at its lowest in Europe Since 2008, steel production in the EU has already fallen by 30% to reach 126 million tonnes in 2023, its highest historic low level, with the loss of 100,000 jobs. And the worst is perhaps yet to come, as the production capacity utilization rate has fallen to 60%. A level considered unviable in the long term for an industry which has very high fixed costs. For manufacturers, the priority is to tackle global steel overcapacity, estimated at 550 million tonnes (including 500 million just in China), or four times European production. According to the OECD, an additional 157 million tonnes should arrive on the market between 2024 and 2026. “It is a steel coming from blast furnaces which consume a lot of carbon, underlines Axel Eggert, the general director of Eurofer, the federation European steel producers. If it arrives in Europe, it will annihilate all ambitions to reduce the sector’s emissions. »Europe, the most open marketAxel Eggert is hardly optimistic for the future. “China is pushing for a general collapse in prices, which is leading local producers to fall in line, and the safeguard measures put in place in 2018 are no longer enough,” he explains. The trade barriers installed in the United States also redirect trade flows towards Europe, the only major market to be so open. Sometimes with aberrations. “Today, there are countries buying Chinese steel. and sell theirs to us, like the Philippines. Normally, we should put in place safeguard clauses, but the WTO does not authorize this for developing countries,” underlines Christophe Grudler. Circumventing the rules has become a fashionable global sport. To increase its sales of stainless steel to Europe, by going under the radar, Indonesia passes its volumes through Turkey or Vietnam, where the labels are changed. “We need European leaders to open their eyes and change software,” says Bruno Jacquemin, general delegate of the A3M Federation (Alliance of ores, minerals and metals). Otherwise our industry will not last much longer. »
—-
Author : News7
Publish date : 2024-11-27 19:20:01
Copyright for syndicated content belongs to the linked Source.