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EU Bolsters Steel Industry With New Protective Measures

The EU's new measures aim to shield its steel industry from foreign competition. European steel stocks rise on the news, but challenges remain.

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1 min read
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EU Bolsters Steel Industry With New Protective Measures

The European Union is set to bolster its steel industry with new protective measures. Following a Bloomberg News report, the EU plans to halve steel import quotas and impose high tariffs on excess imports. This move has sparked a rise in European steel stocks.

The EU's Industry Commissioner, Stéphane Séjourné, revealed these plans in internal meetings. He proposed protective tariffs of 25-50% on Chinese steel imports exceeding quota limits. Additionally, the EU aims to reduce duty-free import volumes significantly. To promote domestic production, 'Buy European' rules will be introduced, mandating the use of European green steel in public infrastructure projects. Germany's Finance Minister, Klingbeil, supports preferring domestic steel in state contracts.

Thyssenkrupp's marine division, TKMS, has received a positive reception ahead of its Initial Public Offering (IPO). After the spin-off, Thyssenkrupp will refocus on its steel business, currently facing cyclical challenges. The company's stock has risen by about four percent following the news. Other European steel stocks have also increased, with Salzgitter up around nine percent and ArcelorMittal up about three percent. IG Metall, the largest trade union in Germany, has urged the German government to act decisively to stabilize the steel industry and strengthen Germany's industrial location.

The EU's planned steel import quota reduction and high tariffs aim to shield the European steel industry from foreign competition. The positive reception of TKMS's IPO and the rise in European steel stocks suggest optimism in the sector's future. However, the German steel industry still faces cyclical challenges, prompting calls for government intervention.

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