13 May 2025 – Over-subsidised: ‘Not every steel mill may have to survive’. A controversial approach to achieving a healthy steel industry in Europe. Stainless steel prices in Asia continue to rise. Reports from the three major EU stainless steel producers show significant increases in deliveries and production.
Not every steel mill may have to survive
A recent and very interesting article in the online edition of the German WirtschafsWoche magazine reveals a very controversial approach to European steel mill. In it, the German entrepreneur Carsten Brockhaus, CEO of the Brockhaus Group, says, among other things, that perhaps not every steel mill needs to survive in the course of the switch to cleaner production and that it makes no sense to save steel producers with subsidies. An approach with which we can fully agree. The article also states that there must continue to be a steel industry in Europe.
EU steel mills must adapt
European steel mills should finally focus on the essential products that offer real added value and abandon the production of interchangeable mass products that can no longer be produced competitively in Europe. A balanced mix of domestic steel production and imports from other European countries would be the most sensible way to achieve a genuine transformation in the European Union’s value chains. And in view of the current trade conflicts, an important step towards a balanced trade equilibrium.
Times of oppressive protection and over-subsidisation are over
Thorsten Gerber, CEO of the Gerber Group, said today: ‘Ultimately, the mix of steel production and imports must be healthy for our entire economy and stimulate competition.’ He continued: ‘The days of oppressive protection and over-subsidisation of large individual lobbies, as the EU steel mills were for decades, are over. Now the demand side in the metal processing industry must be strengthened and led into a competitive future.’
You can access the article ‘Es muss vielleicht nicht jedes Stahlwerk überleben‘ here
Stainless steel prices in Asia continue to rise
Spot market prices for stainless steel from Asia rose again today, Tuesday. Above all, prices for hot-rolled stainless steel rose by around 0.7%. Prices for stainless steel scrap were also up significantly today at 1.2%.
EU stainless steel mills increase production and deliveries in Q1 2025
The results of the quarterly reports from the three major EU stainless steel mills are in stark contrast to the negative sentiment that is often spread from there, which is aimed at unsettling other market participants.
In the first quarter of 2025, the three producers were able to significantly increase their production and deliveries. Delivery volumes increased by up to 14% at two producers compared to Q4 2024. One stainless steel producer was even able to increase its production volumes by almost 30%.
Once again a good indication that you should always form a second opinion.
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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.
