Steel Institute VDEh (Düsseldorf, Germany):

H. J. Kerkhoff, President and Chairman, e-mail: redaktion@stahleisen.de

Steel volumes in Germany are rising. Crude steel production will probably increase by about 1 % in 2015 to 43.3 million t. The main burden continues to come from Chinese steel exports, which rose again in early 2015. There is also a risk of distorted competition on the EU steel market in the wake of nationalization of the Italian steel company Ilva. Meanwhile, regarding energy and climate policies, the steel industry is also concerned about new tightening up of the EU emission trading scheme. If today’s regulations were to be continued beyond 2020 the steel industry would be threatened with a reduction of allocations of more than 40 % by 2030. This would result in massive additional costs of up to one billion euros per year for the steel industry in Germany alone. Competitive steel production would no longer be possible in such a scenario. For industries facing international competition, such as steel, the European emission trading scheme after 2020 must be designed in such a way that the CO₂ reductions required can be realistically achieved, and that the most efficient plants are not burdened by additional costs. This would tally with what the European Council decided on emission trading last October. The steel industry appeals to the German government and European institutions to readjust the regulations on carbon leakage in line with the European Council's findings, and to link any decision on the market stabilisation reserve with a corresponding mandate for the EU Commission.