Steel production

Crude steel production in the 64 countries that report to worldsteel rose by 0.6 % to 156.2 million tons in August 2020 compared to the same month last year. Chinese crude steel production increased by 8.4 % to 94.8 million tons. Due to the corona crisis, many national monthly figures are estimated and will be revised when next month's production figures are updated, according to the World Steel Association.

Crude steel production in Germany remains on a downward trend: In August, production fell by 13 % compared to the same month last year. Over the period from January to August, steel production was 16.5 % below the same period in the previous year. There are still no signs of stabilization in production.

On the occasion of the informal consultations of the EU Council of Trade Ministers, EU Trade Commissioner Valdis Dombrovskis and German Economics Minister Peter Altmaier spoke out in favor of supporting the European steel industry. Altmaier said that politicians "do not want to and will not abandon the European steelworkers in the various member states". A competitive perspective is important in the planned transformation to green steel. One instrument for this could be a "border adjustment mechanism", whereby products from countries with lower climate standards than in the EU are subject to a levy when they are imported. However, this would have to be designed in accordance with WTO rules.

In order to create reliable framework conditions for the steel industry, the German government is working in Brussels to ensure that there is a project of common European interest in the field of hydrogen, said Federal Minister for Economic Affairs Peter Altmaier in an interview. He sees great willingness in the EU Commission to grant approval under state aid law for such an IPCEI project. Individual funding amounts would then have to be determined, which would be granted as subsidies for specific investments in the steel industry.

Democratic US presidential candidate Joe Biden would end the US trade conflict with the EU, as his foreign policy advisor Antony Blinken said at a virtual event organized by the US Chamber of Commerce. Instead of harming its own citizens and dealing with its Democratic allies, it should work on a fair approach to international trade and investment, Blinken emphasized.

Exciting times - let's see where the journey takes us. Perseverance is the order of the day!!!

Dominique Mayer