Monday, April 11, 2016

Steel industry: Unite Against China’s cheap imports – ZEIT ONLINE

The Germany AG lives. Business representatives and trade unionists, mayors and ministers, councils and boards go on Monday to the streets. Tumbled is for an industry that is dependent on their survival in Europe mainly by the European Union (EU): “Steel is the future” – this is the motto IG Metall has made the action. And if the biggest German trade union anwirft their campaign apparatus then can be mobilized tens of thousands.

Alone in Duisburg, where the largest German steel mill stands and where among others Federal Minister Sigmar Gabriel and NRW state premier Hannelore Kraft (both SPD) occur and the importance of these basic industries for Germany will emphasize the union expects more than 10,000 demonstrators. Before the chancellery in Berlin, it will be slightly less, as in the Saarland, where there are demonstrations of various steel plants with Oskar Lafontaine and the CDU Prime Minister Annegret Kramp-Karrenbauer. Addressee of the concerted action is the European Commission. In two fields, the steel lobbyists Brussels see the duty: the trade and climate protection.

It’s about protective tariffs against Chinese dumping steel and a correction of the plans for the CO2 emissions trading. If the fourth trading period in the next decade configured as previously planned by the EU, would then have only the German steelmaker spend around one billion euros in addition to the CO2 certificates. And that would be the end of the steel in Germany, it is feared. Accordingly big is the pressure on Brussels to correct the previous plans. In the fall is expected to make a decision.



China flooded the market with steel at bargain prices

Currently suffers the industry mainly including that the Chinese to because of their enormous overcapacity flooding the world market with steel at bargain prices. Since 2010 they have doubled the export to the EU – with dramatic effects, especially for the manufacturers of mass-produced goods. The most harmful it hits the UK. The Indian Tata Steel Group aims to get rid of its British steel business, 15 000 jobs are threatened. Tata has lost the desire on steel since the British plants make every day more than one million euro loss. Either we find a buyer for the business, or Tata makes the plants resistant. Alone at Port Talbot (Wales) location working 5500 people. End of the month, the Supervisory Board will decide.

speculation about an entry of the German market leader ThyssenKrupp are only partly plausible, the Tata-sites on the island are considered ailing. And from the ordinary steel, which the British still produce to Thyssen-Krupp has separated many years ago. Tata also operates a flat steel plant in the Netherlands with access to the sea; as for the production of one ton of steel around two tons of raw materials are used, the location of a plant on the water is a great location advantage.



world leader Arcelor Mittal made in 2015 seven billion euro loss

The German manufacturers, in addition to ThyssenKrupp are especially Salzgitter and Saarstahl and Arcelor-Mittal sites in Eisenhüttenstadt and Bremen, it is still relatively good. High-quality steel to acceptable prices for the auto industry and the engineering keeps afloat. Based on the figures of the world leader Arcelor Mittal but it is clear in what state of the world market is: Last year, the Group made approximately seven billion euro loss. Also because the Chinese steel glut by one third, the prices to crash. The European Commission underlines its willingness to become punitive tariffs and refers to appropriate anti-dumping investigations. Provisional duties on cold-rolled flat steel cheat up to 18 percent, defends itself Brussels. The German Steel contrast, leads to the practice of the US authorities, be their duties up to 66 percent.

2015 Chinese have approximately seven million tonnes exported to the EU – a market with a production capacity of 175 million tonnes, but approximately 15 percent are not needed. The problem with the excess capacity would decrease if Tata would close down in the UK. And 15,000 steelworkers entließe in unemployment. Bitter irony of history: British officials have propped in Brussels against higher tariffs on Chinese steel.

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