German stainless steel distributor Gerber Steel has criticized the European Union’s slow progress on its green steel transition, noting that the bloc is failing to meet its decarbonization goals.
Alongside these structural shifts, raw material markets in Europe and Asia remain firm. Iron ore futures on the Singapore Exchange are trading above $106/mt, reflecting resilient demand from global steelmakers.
Europe’s missed green steel targets
Instead of driving industrial transformation, Europe’s steel sector is weighed down by regulatory complexity, subsidy debates, and protectionist measures. Many steelmakers have either frozen their conversion plans, postponed projects, or reconsidered investments.
The underlying reasons are clear: unfavorable market conditions, high risk exposure, and insufficient protection from imports. This reliance on policy shields is preventing the bold steps needed for Europe to lead the global green steel transition.
China moves ahead with green steel partnerships
In contrast, China has made tangible progress. Domestic steelmakers have been shifting to low-emission production methods for years and are now preparing to supply greener materials to industrial customers.
A key milestone is the partnership between HBIS Group and BMW Group China, announced in 2022. Starting in 2026, BMW will integrate HBIS green steel into its vehicle production in China. This agreement shows how the shift from carbon-intensive to green steel can be achieved through market- and competition-oriented ways without heavy reliance on subsidies and protectionism.
A lesson from China’s Steel Action Plan
China’s recently-published Steel Action Plan reinforces this trajectory. Its first principle calls for “strengthening industry management to promote survival of the fittest”, signaling a strategy built on innovation, consolidation, and competitive progress.
Gerber Steel contrasts this with Europe’s current path, where additional protectionism and regulatory delays risk leaving the region further behind in the global steel decarbonization race.