European stainless Steel Industry: the United States cannot rely on protectionism to solve its problems

SMM6, 20 Feb. Markus Moll, chairman of consulting firm Steel and Metals Market Research, said that for some of the higher-cost factories in Europe, the United States, South Korea and Japan, they now rely mainly on selling cold-rolled and hot-rolled coils and increasing profits by buying low-cost raw materials.

China's stainless steel companies have mastered more advanced technology, thus reducing production costs and expanding market share, but the United States cannot curb China's development through protectionism.

After expanding its production capacity by using nickel pig iron as raw material over the past decade, China's stainless steel industry now accounts for half of the global market share of stainless steel crude steel production.

At present, protectionism in the United States has had an unexpected impact on local steel enterprises.

(United States Steel Corp), a US steel company, said on Tuesday that it would shut down two blast furnaces in the US and one in Europe.

The main reason is that US steelmakers have returned to their original capacity after US President Donald Trump (Donald Trump) imposed tariffs on imports of steel from countries, including China, but the general environment is that manufacturing demand has weakened and prices have been suppressed, so the recovery of capacity has led to an oversupply of steel. "related news-US steel companies have resumed production capacity after the tariff has been imposed, but the US Iron and Steel Company has announced the shutdown of three blast furnaces.

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