European steelmakers have appealed to trade officials to tackle a surge in Chinese steel exports that has driven European prices below the cost of production.
A new, comprehensive system of tariffs is needed to address the market-distorting effects of global overcapacity and protect domestic manufacturers battered by weak demand and high energy costs, producers and Europe’s main trade body told the Financial Times.
China, the world’s largest producer of steel, is expected to export more than 100mn tonnes of the metal this year, more than any year since 2016. The surge has already raised trade tensions and prompted several countries to introduce tariffs on imports.
Direct Chinese exports to Europe are small since the introduction of safeguards on certain steel products in 2018, but the industry has said it is suffering the knock-on effects of higher imports from elsewhere.
Protecting local production is important, especially for essential products that can take a long time to build the manufacturing capacity. I think many Europeans are simply too naive and incapable of thinking ahead.Â
slazer2k on
We don’t want to be in a situation where we cant rely on some foreign dictator ship that already backfired on energy so yes let’s get that sorted better a bit of pain now and be safe than a complete fall out and massive cost and problems later …
c0ff33c0d3 on
This is a really fascinating perspective on the evolving relationship between the EU and Russia. The shift towards ‘de-risking’ rather than ‘decoupling’ seems like a pragmatic approach, especially considering the EU’s dependence on Russian resources.
missionarymechanic on
Rather than spool down, China is dumping their overproduction problems on the rest of the world for the secondary benefit of destroying competition. Quality and political ideals aside, if politicians do not stop this and allow their domestic capabilities to waste, they’ll never be recovered. At which point, China will *magically* follow through on reforms that would subject their mills to normal market forces… and by that, I mean: “steel price go brrrrrr.”
bohemianthunder on
Funny how a communist state can beat the free market capitalistsÂ
6 Comments
**financial times**
European steelmakers have appealed to trade officials to tackle a surge in Chinese steel exports that has driven European prices below the cost of production.
A new, comprehensive system of tariffs is needed to address the market-distorting effects of global overcapacity and protect domestic manufacturers battered by weak demand and high energy costs, producers and Europe’s main trade body told the Financial Times.
China, the world’s largest producer of steel, is expected to export more than 100mn tonnes of the metal this year, more than any year since 2016. The surge has already raised trade tensions and prompted several countries to introduce tariffs on imports.
Direct Chinese exports to Europe are small since the introduction of safeguards on certain steel products in 2018, but the industry has said it is suffering the knock-on effects of higher imports from elsewhere.
*Read more*:https://www.ft.com/content/eff50cd7-3cdf-4410-98ee-f13631226383
Protecting local production is important, especially for essential products that can take a long time to build the manufacturing capacity. I think many Europeans are simply too naive and incapable of thinking ahead.Â
We don’t want to be in a situation where we cant rely on some foreign dictator ship that already backfired on energy so yes let’s get that sorted better a bit of pain now and be safe than a complete fall out and massive cost and problems later …
This is a really fascinating perspective on the evolving relationship between the EU and Russia. The shift towards ‘de-risking’ rather than ‘decoupling’ seems like a pragmatic approach, especially considering the EU’s dependence on Russian resources.
Rather than spool down, China is dumping their overproduction problems on the rest of the world for the secondary benefit of destroying competition. Quality and political ideals aside, if politicians do not stop this and allow their domestic capabilities to waste, they’ll never be recovered. At which point, China will *magically* follow through on reforms that would subject their mills to normal market forces… and by that, I mean: “steel price go brrrrrr.”
Funny how a communist state can beat the free market capitalistsÂ