15 January 2025 – China is boosting domestic demand for stainless steel by extending and expanding its old-versus-new policy on large appliances and consumer goods, such as white goods. And the EU aluminium and steel associations are calling on the EU Commission to immediately tighten export restrictions on ferrous and non-ferrous scrap – and are once again playing tricks with the figures.
Stainless steel: China continues to boost domestic demand
A few days ago, the Chinese government announced the expansion of measures for the replacement of large appliances and the trade-in of consumer goods for 2025. This measure is aimed at further strengthening domestic demand for new appliances and vehicles.
This measure will therefore particularly benefit the automotive, household appliances, decoration, digital and construction industries, in which stainless steel is frequently used.
Analysts assume that the expansion and extension of the old-versus-new policy, which had already led to a year-on-year increase of over 21% in domestic Chinese stainless steel demand in 2024, should also increase demand by more than 9.9% in 2025.
EU steel lobby: Renewed calls for an immediate ban on scrap exports
In a letter to the European Commission, domestic steel and aluminium producers have once again called for restrictions on the export of ferrous and non-ferrous scrap from Europe. The EU Commission should use the full range of measures at its disposal to implement export restrictions on scrap immediately.
Scrap export ban would be a massive encroachment on the EU’s economic freedom
Such a scrap export ban would massively interfere with the economic freedom of EU companies and jeopardise small and medium-sized companies in the important recycling industry in particular – where large steel companies, for example, have been thinning out the entrepreneurial diversity for several years with the approval of the European Commission and could thus create a dangerous oligopoly dominated by corporations.
The days of restrictions on economic and social freedom in the political arena are definitely over. Where this leads can be seen in the movements in the party landscape and the voting behaviour of citizens, not only in Germany but also in other major European countries.
Exports of ferrous scrap have fallen by 24%
In addition, the figures cited by the lobby organisations could once again be described as misleading. Or why does the letter to the Commission fail to mention, among other things, that exports of steel and iron scrap fell by 24% from 2021 to 2024? And instead only highlights the increase in aluminium scrap exports and constructs an alleged horror scenario for steel scrap?
Once again a perfect example of the number games and the narrative in the fight for subsidies, market distortions to the detriment of SMEs to enforce restrictive measures, which can be observed not only in the case of scrap.
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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.
