8 November 2022 – Reading the press releases and new statistical forecasts of the European steel producer association EUROFER, it seems that the end of the world in the steel industry is once again just around the corner. One is reminded of the ancient fable of the shepherd boy and the wolf, which is attributed to the Greek poet Aesop.
EUROFER: Wolves at the gates of Europe
It is not only with the onset of the Corona crisis that the European steel industry has become accustomed to the shepherd boy running from the field and panicking, “Wolves, wolves!” shouting in an increasingly aggravated pitch that one is reminded of the rolling-over voices of pubescent boys.
More money, more fences, more support
There are EUROFER calls for more money to protect against importing wolves. For higher market fences to protect the lush European pastures. After more support so the shepherd boy can do his part in the green transformation. And what else the shepherd boy has been calling for since the beginning of 2020 to warn of the wolves that would otherwise eat him.
And not only at the beginning of the Corona crisis, but also in 2021, when stainless steel producers like Outokumpu or Aperam had not only record-breaking sales but also the highest net incomes to report to their shareholders.
Without question, 2022 was a challenging year and if you pay too much attention to the shepherd boy, you might even come to believe that his sheep have already been eaten by the wolves several times.
To the detriment of the European economy
But what could have been achieved if the shepherd boy had not constantly warned of imaginary wolves in increasingly shrill tones, but had instead participated in moving the European economy forward in challenging times and not left his insidious poison in the minds of market participants?
More aid, more record sales
The shepherd boy would rather demand more aid. To squeeze out every last cent, while these tax euros would be better spent elsewhere. And although energy costs have now fallen by almost 70%, companies like Aperam continue to drastically increase their energy cost surcharges and others announce record results once again.
EUROFER: Wolves! Wolves!
You know the fairy tale of the shepherd boy always before the not existing wolves warns surely. And you also know what happened to the shepherd boy and his sheep in the end. If not: at some point the villagers no longer believed the shepherd boy. And when the wolves really came, they not only ate the sheep, but also the shepherd boy, because no one wanted to believe the shepherd boy anymore.
Thorsten Gerber, CEO of the Gerber Group, said: “The shepherd boy only helps himself. And he’s not doing his sheep any favors either with his behavior of always calling for the wolves. In the end, the shepherd boy harms everyone. The villagers, his sheep, and himself as well.”
A dictatorship of the shepherd boy cannot, must not and will not exist in Europe. Just because the shepherd boy shouts the loudest, what he communicates does not have to be right. And perhaps only serves his own goals.
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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.
