[SMM Stainless Steel Flash] EU ETS Reform Puts German Trade Unions in a Dilemma; WV Stahl Demands Energy Subsidies

Published: Jun 15, 2026 11:36
Brussels is considering extending free ETS certificate allocations beyond the originally planned 2036 phase-out, which would continue to benefit blast furnace producers while leaving early adopters of cleaner electric arc furnace technology largely uncompensated, creating perverse incentives. The proposal has exposed a deep dilemma within Germany's IG Metall union, which represents workers at both blast furnace and EAF facilities with diametrically opposed interests; Saarland's union chapter vocally opposes ETS dilution while the national Berlin organization has remained silent on the issue. Meanwhile, WV Stahl is demanding permanent electricity price relief to EUR 50/MWh, with critics noting this would ultimately be funded by German taxpayers. In base metals, Asian and European markets posted broad gains on Friday, with zinc leading at over 2%.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn