Germany warns of wave of Chinese steel flooding into Europe

Illustration photo.

Germany - Europe's leading economy - is warning that its domestic steel industry is under increasing competitive pressure from Asia - especially from cheap Chinese steel.

In Berlin, Chancellor Friedrich Merz recently chaired a steel industry summit, attended by businesses, unions and relevant state governments.

Chancellor Merz warned that the German steel industry risks disappearing if timely support measures are not taken. Germany and the European Commission have proposed raising steel import tariffs to 50% and tightening duty-free quotas from China. However, this move could cause domestic steel prices to rise, affecting the auto industry.

In addition to high energy costs, the EU CBAM mechanism is considered too complex and inefficient. The German government wants to extend the CO₂ certificate exemption period and plans to introduce preferential industrial electricity prices from 2026.

The German steel industry is facing another problem: low-emission steel (green steel) is difficult to sell because its price is often higher than that of conventionally produced steel. Therefore, producers want the state to commit to prioritizing green steel in public procurement, because so far, price, not sustainability, has been the deciding factor in most cases.

Source: https://vtv.vn/duc-canh-bao-lan-song-thep-trung-quoc-tran-vao-chau-au-100251107165730634.htm